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Wednesday, April 29, 2009

This Is the Bullish Count

I haven't fit anything better together at the moment. What seems somewhat certain is that a diagonal pattern has played out from 825 to 882. This chart shows it as a leading (which is bullish) diagonal in a first wave position. These usally retrace somewhat, at least half so a dip into the lower 850's, high 840's could be expected. So after that retrace, the market will bust upwards in the next phase of the rally, likely onward to meet the 200DMA's in the mid 900's.
Perhaps these humps are series of 1's and 2's, but again, I dunno. The emini chart I showed certainly looks like ABCs using all hours...and that means a diagonal of some sort.
I'm betting its an ending diagonal.
This count has some flaws. The X wave seems short for one thing.
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