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Friday, September 4, 2009

The Bullish Count to new P2 Highs (fixed)



EDIT: SAT 10:20 AM - I fixed the Monday reference to Tuesday and the Tuesday reference to Wednesday in the post and chart. Also I'd like to say that I consider this an "alternate" count. I still think P2 top was in at 1039 and that next week the market should get sold off.

I am prepared mentally should the count look to make new highs again. After all, Minor wave C of (Z) of P2 did not extend very far as compared to Minor A of (Z). 2104-2107 makes a nice target if 2059 is taken out with authority. 2150 would be max as you can see on the long term chart, this is serious resistance.

The squiggles certainly support a bullish count. I cannot deny that they make very fine series of 1's and 2's and now the 3's' and 4's are playing out. The whole move from the recent low would be likely Minuette pink (i) of Minute green [iii] of Minor blue C.

My NASDAQ squiggle chart shows what Tuesday may bring if the bullish count is the correct count. A gap up followed by a fade gap cover followed by one more run to new highs followed by a bearish retrace for Minuette (ii). Or something like that. That would be a lot of volatility which is probably due anyways the VIX may bounce some on Tuesday.

The key thing is the market would not fall apart as I am betting that it actually does. It would hold roughly 2008 support and set itself up for a big move up on Wednesday with very good ratio volume.

That's about the bullish count I suppose. Note that it will only extend the Minor C for a few weeks, 3 at best. September will be then heralded a "winner" halfway through only maybe to give it all back.

So I have patience either way.

Some people were liking a turn date in mid September anyways.
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