Custom Search

Saturday, July 16, 2011

Weekly Review ~ July 9 - 15 2011

Last Friday the count was Minute [iv] of Minor 5   We were looking for more pullback perhaps, but at the least, the base channel was expected to hold.

On Monday, we got that further pullback, yet I mentioned the down selling pressure was way high to be a Minute [iv]. However we were willing to see one more day of trading before switching again to the [e] wave of Minor 4 triangle count.

On Tuesday we had a fulfillment of a 5 wave down pattern and switched counts to the [e] wave count. It is supposed that this 5 down is the first leg (a) of an (a)-(b)-(c) 5-3-5- zigzag [e] wave of Minor 4 triangle.

We were looking for a (b) wave sideways correction with a price high in the 1331-1333 SPX range. We got the bounce to 1331-1333 on Wednesday speculating the market was forming only part of (b) of [e].

Thursday the market exhibited more corrective-looking wave patterns and speculated that there will be even more sideways weakness on Friday.  That appears to have been the case on Friday

1. Going into this week, I was generally cautious about the market figuring it was, at best, in a Minute [iv] sideways pattern (with perhaps more price weakness). The backup count, Minute [e] wave of Minor 4 triangle was always waiting in the wings upon more price weakness.

2. Calling a break of support at 1331 for the market to move down to 1317 area. Thats what happened on Monday.

3. After seeing a pretty decent 5 wave pattern down and labeling that wave (a) of [e], marking resistance at the 1331-1333 area for a (b) wave.  That price area capped a rally and forced a reversal.

4. Generally being cautious all week not calling for any big moves either way as we had no confirmation of a finished (b) wave pattern.

1. Speculating that the dollar gap up Sunday would get filled soon It did eventually get filled, but not until it had attempted a breakout and run-up much higher.

On Monday we speculated GOLD was consolidating for a push higher. I patterned a triangle on a chart but it turned out to be a flat only.

Gold then did get that push higher

Still awaiting a move down in yields to challenge the blue box virgin wave space Prices continued to move that way this week.  Perhaps a (c) wave down in equities will produce the final wave down in bond yields.
blog comments powered by Disqus