Wednesday, July 22, 2009
Probably an ending diagonal in play for Minute [v] that either topped out at 959 or will tomorrow in the 960's. Either way, the waves are choppy zigzags and have lost their pure impulsive look.
I'll be looking for a minor blue B wave retrace soon. To what level we can look at Fib markers and the 38% spot is a good guess that lies in the mid-920 range. 927-934 is a strong support range and thats the general area I am looking at first for a B wave price retrace. Once the waves keep playing out, we'll know more of course.
The last time I was in this positon with the market topping out in the 950's in June, I was looking also for a B wave retrace and a C wave rally toward the high 900's. It didn't pan out. So I won't presume that I must absolutely be correct this time either.
However there is no doubt that this rally leg is so much stronger than the "C" wave rally leg that topped at 956 in June. So I am not looking for a collapse from here as some are. In June I should have been looking at technicals to see an (X) wave pullback coming. I was looking at sentiment. However this time, I think sentiment is the correct primary focus and wave structure. That and good 'ol support and resistance lines.
We'll see! Summer marches on.
Posted by Daneric at 4:08 PM