Thursday, March 11, 2010

3/11/10 - SPX EOD - Possible 1180 target for P2? [Edit 9:10 PM PST]

[Edit 9:10 PM PST]

Just including this chart again. It goes well with the chart below.
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SPX


SPX Closeup


Though technically my previous count may still apply, I am going to focus on the one above since I believe 1150.45 will most likely be breached. But then again the market may decide to take a plunge tomorrow(I have a feeling this won't be the case).

So back to the count above. I'm showing a possible target of 1180 for this leg to complete.

Based on this count, Intermediate (Z) is forming a flat. Minor wave C (green)is in progress with minute waves [i] through [iv] of C complete. I'm projecting a possible 5th wave extension, which would correlate with the head and shoulders target.

If there is a fifth wave extension, EWP, pg 136 states, "Another typical development is that wave 5's length is sometimes related by Fibonacci ratio to the length of wave 1 through wave 3, as illustrated in figure 4-4." I do not the figure handy to post but it shows that wave 5 is 1.618 times waves 1 through 3.

On my chart, the green fibs above represent waves 1 - 3 (0%-100%). If wave 5 =1.618 times waves 1 - 3, wave 5 would complete at 1180. Again, this matches up with the head and shoulders target.

The other Fib relationship on the top chart shows where Minor C (green) would end. C = A at approximately 1166.

I'll play around with some more Fib ratios and post them if I find any.

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