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Friday, August 7, 2009

One Possible Count - Expanding Triangle

The A wave that topped in March off of the initial low traced an expanding triangle Minute [a] wave. (My original count is different in that I called it Minor wave 1 up - which of course - who knows - may turn out to be correct.)

Same thing happening here? Its a tough call. Just wanted to show you the possibilities. Sentiment is extreme no doubt.

Mondays usually follow through in what Friday's do as a rule of thumb for many months. So perhaps we are do for a change of pace.

There is some serious short squeezing going on and late rally laggards are getting bids. Yet resistance exists at 1020. Squeezing may subside and people may decide to retreat over the weekend.

The NASDAQ is diverging of course. No new high just yet. So that is bearish as the market is fracturing a bit.

But 2 hours left lets see how it plays. P2 is getting fun yes? Definitely upside surprise today but if its an expanding triangle, it'll do that on the (d) leg.

Daily SPX, so far, shows a negative RSI divergence for the first time really since the 869 low.

But anyways take this chart with a grain of salt and a shot of whiskey if your short.

P2 is all about shaking out bearishness to the very last drop.

PS - Just got home from work.
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