Tuesday, February 9, 2010

2/9/10 - PRE-MARKET UPDATE [6:20 AM PST UPDATE]

[6:20 AM PST UPDATE]
New 1-2, 1-2 setup (Alternate)


This is a chart representing what I mentioned below if 1065 caps this mini rally. Not saying this is going to happen, but definitely something to keep an eye on.


E-Mini


SPX Alternate


So what is the market telling us this AM? Looks like overnight the E-mini decided to rally and is indicating a strong open for the market.

The E-mini chart indicates some wedging going on, which may be fitting if (ii) was not complete. The count looks right. The pop appears to be completing subwave e of the wedge. Guess where that upper trendline hits? 1072.

The bottom chart highlights some potential targets for wave C of (ii) on SPX. The red fib lines represent the ratio to wave A of (ii).

Levels to watch:

1065 (overhead resistance)
1072 (c=.618a)
1083 (c=a)

My bet is that 1072 caps this mini rally. If 1065 caps this mini rally, then I see a potential for a clean 1-2, 1-2 count for iii of (iii). Stay tuned for that count if this is what happens.

4 comments:

  1. Have you consider the case of Wave (I} finished around 1072, and an irregular A-B-C correction?

    Wave (I): from 1150 to 1072

    A: from 1072 to 1105
    B: 1105 - 1045
    C: deveolping now

    Best regards, AS from Argentina

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  2. Hi Grand,
    What a day! I am holding on to the double ZZ theory for (ii) of [iii]. May have one more push to the channel boundary tomorrow. Much beyond that, and you've got to wonder.

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  3. Hi AS. I have not considered that count but will take a look. Had a long day at work today so will take a looksie tomorrow. thx for reading and commenting.

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  4. Blankfiend,

    good call B. I agree with ur call and the wonder. i have another count just in case mr market wants to surprise us tomorrow. either way, we are close!

    ReplyDelete