9/4/12 - EOD Update

60 Min 

As I posted last Friday, the black and red counts were favored, which implied some near term downside action. I removed the red option since it became very similar to green once it found support at 1297.

The bounce at 1397 provided more weight to the descending triangle pattern that the green option above represents.

We'll see if this is the case very soon. If not, the head and shoulders pattern is looming plus the market closed below the 20 day SMA once again. I'm still watching the MACD trendline as well to provide a clue as to whether wave v of  c of Y is underway.