Friday, May 29, 2009

Up we go...

Looks like the triangle scenario played out. After looking over the charts, here are some facts to consider:

intermediate wave a: 3/6-5/8 approximately 264 pts.
intermediate wave b: 5/8-5/28 approximately 52 pts.

If we use the standard target for a triangle (height to base added to the apex), then we get a target of 955. If we use .382*A, then we get a target of 987. Certainly there is also the 1012 target (.382 retracement of primary wave 1/A). Because the triangle took so long to play out it is hard to see how it could be anything but intermediate wave b. Because the moves off of a triangle are generally so quick, I believe that intermediate wave c would be equal to or less than intermediate wave b in terms of time. If we reverse before hitting those targets, then we likely subdivided intermediate wave a and wave b is to come.

I'll be off on vacation next week, so enjoy the market while I'm gone, and I'll pick things back up a week from Monday.


  1. Today's EOD action obviously looks like it invalidated all sorts of pending patterns in favor of more upside. Since the action was not a continuous rise during the day but a huge buy program in the last few minutes, does this make any difference?


  2. I used to think so, but lately we have had a number of massive rises in the last 5-15 min of a day, and they always seem to stick. We may get a retest of the break out, but I would expect it to hold.

  3. Nice breakout with SPX 912 resistance, now support. We should see heavy volume next week on this breakout for another 5 wave up-move.. Ps: Hope you got out of those Poots ok!

  4. Jean I'm trying to find a count for anything but down on Monday. Do you have an EW chart that looks like Monday will follow through to the upside?