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Thursday, June 25, 2009

Squiggles (updated)

EDIT 945 PM: I added a chart someone had a question in comments. The chart is highly speculative of course showing a Minor blue B wave move toward 950 of an (X) wave flat scenario. Note the invered H&S I mapped.
I am learning more complex EW theory such as the rule of alternation between simple and complex wave structures. Its part of basic theory that the market alternates bewteen the two. Why? I suppose life works that way, hence the market reflects that. Don't you have moments of clarity interspersed with periods of complexity?

For instance today was a simple 5 wave move, a very good structure. The corrective waves since today's high therefore appear to be complex including a possible [B] red wave expanded flat.

I look for a backtest of 908-911 support. Then a move toward 927 resistance area. A push above could occcur and then of course my count calls for the double zigzag peak. If this pattern played out and the market pushed to 931 or so, look for a downward corrective move of the entire push up from 888.

This all supposes that 956 is not P2 peak. If 956 is the P2 peak, than just the opposite will happen. 927 will not be broken and a big bear wave down is coming (I do not completely rule out the alternative until the waves cancel that option). And 927 is the keystone.

See how simple that logic is? We can afford that luxury at the moment.

Should be a fun day tomorrow.


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