12/22/10 - EOD Update

EOD Update

Option 1A

This is the count to watch at the moment. Notice the subtle difference between this count and the extended wave 5 extension count I have below. The count below is the alternate option for 1A.

Wave 5 Extension

See here again for a brief explanation of the Golden Section and how it applies to wave 5 extensions.

This is the internal count of option 1B, which was expecting a pullback to complete minuette (iv) of an expanded flat. This option IMHO is most likely ruled out since wave b/x has extended almost 200% of a/w. Per EW guidelines, the chances that this is turning into an expanded flat has diminished greatly once wave b extends beyond 1.618*a.

Here is the larger chart as posted at EOD yesterday.

Minor 4 Option

But before we give up on a larger pullback that could be in store, do ya'll remember this chart? I do, it still fits within the guidelines for an expanded flat, granted it is really pushing the limit here.

If this count is to remain on the radar, it will need to pullback starting tomorrow. What are the chances of that? The market will tell us tomorrow :)