Monday, October 26, 2009

Bears to your battle stations...

Attention all bears, the bulls are on the ropes and they are tired. This is the critical week and tomorrow / Wednesday will define it. We have broken below the failed breakout bar. We are approaching the uptrend line. Will it hold or is primary wave 3 upon us. The uptrend line intersects tomorrow at around 1057. I am very confident that we will break 1057 tomorrow; however, will the bears tire out and the bulls retake the high ground? That is what the bulls have done every time the bears thought they could take over. It happened on 10/2 when the bears broke the trendline (well it was a different trendline but almost the same). It happened in early July when the bulls were in danger of a massive downsweep with a confirmed head and shoulders pattern.

As for the EW count, here are a couple of charts. I think the count currently works best with a failed 5th wave last week.

Best to your trading!

1 comment:

  1. The markets been a lot choppier and volatile lately.. Making for some good short term action.. Good luck to you , great charts!