Just drawing some channels tonight and came up with this one, which is a little different than the one I have been following.
I drew the EW channel using the end points for waves 2 and 4 as prescribed by EWP and drew a parallel line at the termination point of wave 3. All this of course assumes this structure off the March 2009 bottom is working on 5 waves up.
Now look at the the light blue line which signifies the center channel. The market has respected this line quite nicely.
My near term count has us wrapping up minuette (i) of minute [iii], which would match up well with the market finding resistance at the center channel again. I'm now expecting/waiting for a minuette (ii) pullback.
I don't show it on the chart but a 50% (typical wave 2 retrace) retracement would hit the yellow quarter channel below, which the market has also respected in this rally.
Remember the failed H/S in July 09? Have we just witnessed a repeat (and yes I'm still watching the larger one)?
