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Thursday, April 23, 2009

Competing Channels

I always keep an eye on the e-minis. Often when the cash index gets a bit unclear, the 24 hour trading of the minis gives clues.

I wanted to make tonight's update a complicated affair showing all the possible counts but I erased it all deciding its just best to keep a simpler theme and stick to my guns. This chart shows why I had many possibilities in a nutshell. There exists competing channels and one will win out shortly in A/H's.

You can really see a nice 5 wave down move from 872 to 823. Since then you can see the sideways chop action. One more rise to the upper green channel would represent a flat and a flirt with filling the gap at 865, and possibly create a doubletop or so and I would have to change my count on this chart and consider other possibilities. But until it does that, I won't change my Primary count. But I wanted to show you the patterns anyway.

So if you have e-mini futures, keep an eye on how this plays out overnight. Which channel will win out for now?

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