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Thursday, April 23, 2009

Competing Channels

I always keep an eye on the e-minis. Often when the cash index gets a bit unclear, the 24 hour trading of the minis gives clues.

I wanted to make tonight's update a complicated affair showing all the possible counts but I erased it all deciding its just best to keep a simpler theme and stick to my guns. This chart shows why I had many possibilities in a nutshell. There exists competing channels and one will win out shortly in A/H's.

You can really see a nice 5 wave down move from 872 to 823. Since then you can see the sideways chop action. One more rise to the upper green channel would represent a flat and a flirt with filling the gap at 865, and possibly create a doubletop or so and I would have to change my count on this chart and consider other possibilities. But until it does that, I won't change my Primary count. But I wanted to show you the patterns anyway.

So if you have e-mini futures, keep an eye on how this plays out overnight. Which channel will win out for now?


  1. Thanks DE. As I mentioned int he email it could go both ways. K set me straight on the rules of the pennant. Thought I was on to something. I scoueder chart school for rules all to get it wrong. go figure. I'll add to the book collection and dig deeper. At least we came to the same conclusion - it could go either way. Thanks for your excellent work.

    I liked the big charts. The detail was very nice. I'm on a 19" and it was never a problem to put what I needed to see in the right portion of the monitor.

  2. ya, it definitely could go down then up hard... I'm sitting on my hands until I am 100% positive.... I may even stay cash this weekend, just to relax....

  3. I bet it stays between 835 and 853 right up to the open on Friday which will give us no clue how the market will act on Friday whether to the upside or downside. After Wednesday's late day sell off most thought today would be down and it was up. I'm sure based on the late day rally on Thursday most are thinking it will go up on Friday. So based on that logic Friday would end up being a down day.

  4. Yesterday i change my view on SPX. Maybe is missing one wave to finished this wave C. See more at

    P.S Very nice work Daneric. I like very much your work :)

  5. This post saved me a lot of money today. Thank you.

  6. I guess it's no longer bearish, right?

  7. well I didn't stay in cash at the eod.... lol... but I left plenty to play with.....