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Wednesday, March 18, 2009

Elliott Wave Update ~ 18 March

Wave 4(5) is a dead idea. This is Primary 2. My bullish scenario chart I posted last night pretty much happened although it happened rather quickly to say the least. The inverted H&S target has been met. It appears the last subwave to peak is required to play out to call this initital up a finished five wave move.

In theory it should then retrace to at least 38% to major support at 750. If any retrace backwards is a wave 2 down of some sort or even a B wave, potential exists for a deeper retrace although I wouldn't bet the farm on it. But 750 is reasonable considering this is first challenge of the 800 resistance. But this is no ordinary bear rally. This is a Primary 2 wave rally.

People are anxious to buy back in. I have confirmed this informally at my work. Major resistance was just broke at 780 so holding onto that zone, for now, is a bullish objective. The other bullish objective is the massive gap at 819-826. I am satisfied with the count and chart. Now we'll see how it plays out.

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