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Monday, June 8, 2009

Microsquiggles

The move from 951 to 926 was half accomplished in A/H's. A pre-market high of 957 started moving down and by the time the market opened it was back to 951 area for the SPX cash index. Also then in A/H's last night, the market traced a nice descending-type triangle that also didn't show up in the cash index


Either way it looks like triangle-type waves (zig zag) due to the overlap and complexity of the overlap.

Bottom line is I won't get hung up about the cash index counts. Overall since the first market high at 949, it looks like triangle waves are tracing if you ask me so that's the way I am going with it for now.



Actually today traced a very nice zig zag up. Check it out.

There should be an [e] wave coming tomorrow. 926.44 low must hold for this to be a valid triangle pattern as I have charted. After the [e] wave, a bullish move to a new high should occur at minimum. If it is the true Minor B wave triangle than a very bullish move should occur and there will be a breakout (and backtest hold) of the 950 resistance.

A break of 926.44 to the downside is bearish for the short term. That would be a triangle failure in my book.

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