Monday, October 26, 2009

10/26: SPX, DOW and TRANS

SPX Daily


SPX 60 Min


Dow Daily


TRANS Daily


TRANS 60 Min


Dow 60 Daily H&S


Dow 60 Min H&S



So far it looks like the series of 1-2s are playing out. By the close, I counted minuette (iii) in progress. There appears to be a little more to go.

Be aware, I am still not focusing too much on the degrees at this point. For now that is what I am counting. My minuettes can very well be minute degree.

I still anticipate 1060 being taken out and eventually a move to 1040. The SPX daily chart has been posted again for reference.

Where the market chooses to go from there will be key.

I have included a Dow and highlighted the same things I did with SPX and SPY. One pretty important thing to note, is that the Dow has closed below the March - July Low trendline.

I have included the trannies again because I still think they hold some significance in providing a clue. If the count is correct, minute [i] completed with minute [ii] in progress.

Last but not least, I have included a Dow chart highlighting a potential Head and Shoulders pattern (This also applies for SPX but I do not have the time to chart this now). For those of you who read this blog regularly, you are all aware that I always do this.

So far I think I'm batting very poorly on this. Regardless, I still think it is worth mentioning.

On the 60 min chart, if price hits that lower purple trendline the head will be complete. A nice 61.8% retracement would form the right shoulder.

Notice that the 61.8% retracement level sits just above 9917, a level that would become resistance if price were to follow through down to the purple trendline.

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