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Tuesday, February 2, 2010

E-minis [Update 2:55PM EST]

[Update 2:55PM: I tweaked the wilshire chart a bit. Also note that the 1.618 x (a) = 11445 and its right there]
[Update 2:45PM: I still haven't figured out the count on the Wilshire in taking into account the top waves that do not appear on the SPX nor DJIA.  So kickin some ideas around. This actually looks interesting]

[Update 2:25PM: This is what I got so far on the SPX.]

[Update 12:42: So far it looks like a 5-3-5 zigzag.]

Since I show this as an a-b-c rise from yesterday's low, shorting the rises is like buying the dips. Shoot first, ask questions later. The ascending triangle target would be about 1092-1093.

An a-b-c rise from Friday does not yet count well as a (c) leg of an expanded flat because of the ascending triangle action indicates a 'b' wave, and hence a "three". The (c) leg of a 3-3-5 flat should count as 5 waves. The rise could be an (a) leg of a flat though and that would indicate weakness after the a-b-c is over. Could we be in a big sideways triangle for a (iv) or even a [iv]?  There are numerous possibilities but we must always first consider the best count at any one moment.  

And since the best count is a small a-b-c counter-trend rise from Friday, then thats all you can do for now. I'll take the entry for now and keep ammo for later.

Sideways action all night trying to hold onto the hard fought gains of yesterday. Incredible that an 8.27 up volume ratio day looked "weak".  Good luck today.  
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