Sunday, January 18, 2009

Where do we go from here?

So I have a couple of different open scenarios that I'm watching after last week's drop to the downside.

This is my preferred scenario is that our wave 4 has finished and we are in the final stages of w1 of 5. However, I have not yet counted the structure complete. I see one more need to retest the lows put in last week with either a failed 5th wave or a lower low (doesn't matter how much lower only that it is lower). From there we would move to retest the breakdown from the last trendline in a w2.

This is my 2nd scenario. We move up strongly from here and complete an impulsive wave to the upside as part of a w1 of C scenario. If this were to happen, then our big entry point would be on the pullback. A possible move SPX 1000 or more could be in the cards if this were to happen.


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