Tuesday, May 4, 2010

5/4/10 - SPX : DOUBLE THREE OPTIONS [UPDATED 7:12 AM PST]

SPX DOUBLE THREE - TRIANGLE

SPX DOUBLE THREE -ZIGZAG

E-MINI (UPDATED 5:50 AM PST)


SPX DOUBLE THREE -ZIGZAG [7:12 AM PST]

This is a follow up to last night's lengthy post. See here
 
As the futures market is indicating as of 5:40 AM PST, we are looking at a pretty nice drop into the open. The big question becomes, does it hold?

I know there are many out there looking for a nice 10-15% pullback, which I don't think is out of the question, but wanted to make sure we keep the two options above in mind if this market is stubborn and wants to continue consolidating. 
I hope the two charts above presents a much clearer picture as it relates to the rectangle pattern I have been presenting. 

Should the pullback follow thru here, please refer to my earlier posts for ideas on where that lower target may be: 1170 -1150. See post here.



[UPDATE 5:50 AM PST] 
The E-mini chart has been included. I show the potential to hit the lower red channel in the Zigzag option of the combination. That is also equal to (c) = 1.618*(a). 

But keep in mind the triangle option is still possible if the market stays above (a).

[UPDATED 7:12 AM PST]
The triangle combo is out. Watch the zigzag and the wave relationshiop of (c) to (a) for targets. So far (c) = (a).

GL!

2 comments:

  1. Grand,
    my thought of the "Judgement day" - spx 1219.80 was T2 :) http://humblestudent777.blogspot.com/2010/05/road-to-t2-top-spx-121980.html

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  2. Grand,
    one producer(Dino) at cil kind of asking me to shut up and put my comments moderated, 2nd time he asked me in a week. (1st time a week ago was asking very rudely through both pm & publicly)but all i posted are market related, no nonsense real time info & thoughts. people can chat some nonsense non market related during market hour, while my market info is too much for him. i can feel really a bias against me there, it's 2nd time in a week.
    my thoughts and ideas come very fast and quantity. i'm not sure what to do there with such a bias against me. if you have time, please read what i posted this morning. is that too much and nonsense? thanks

    ReplyDelete