5/22/12 - EOD Update [4:39 PM Update]

[4:39 PM Update]

SPX - 5 MIN 

Here is another example of a possible EW trade setup. I updated the 3 min chart below to a 5 min chart and added some subtle changes to the count.

Note on the chart, should this wave not be five waves up representing a wave (1), it is still possible it may represent a wave (W) or (A).

Confirmation for the bullish setup comes with the break over the red line at 1319.82. The bullish count obviously invalidates below the 1291.98 low.


[2:25 PM Update] 

RUT - Daily

The bearish view of RUT.

 EOD Update

SPX - 3 Min 

This is the primary near term count that I have. The SPX bounced right at the 50% retracement and where c=1.618*a.

 If the bulls break the red horizontal line tomorrow, it becomes more likely that we should see a third leg higher.

If the first five waves up only represent a larger degree wave A., wave C = A at 1346, otherwise 3=1 at 1346 or 3=1.618*1 at 1369. 1369 makes for a nice backtest of the H/S neckline (see chart at the bottom)

Bear - 60 Min

Note how the bullish 3 min above would fit in with the green alt labels on the bear count? Bears must make a lower low to invalidate the near term 3 min count and complete 5 waves down for wave [3] for the bear count.

H/S