Wednesday, December 2, 2009

Wave 4 is likely over

We never did reach my targets yesterday, so that means that we either got a running flat (today's high was a wave b) and we finished our c of 4 off with today's low, OR wave 3 extended with today's high and we'll get one more lower low tomorrow to finish off wave 4 somewhere in the neighborhood of 1102/1103. As it sits right now our waves 4/2 have a .786:1 ratio, so we already have a valid completion target. The way the futures are moving up tonight certainly makes it look like we'll get a wave 5 tomorrow.

Lots of overhead resistance in the 1113 area. If the bulls get it past there, then look for 1120 as the first wave 5 target and 1124 as 1:1 parity with wave 1 target. A daily close below 1103 could put the uptrend in jeoprady, but a close below 1080 would seal the deal.

Here's a look of a chart with more bearish potential (with either a lower low tomorrow for wave 4 or a move below 1100 that would likely be part of a wave 3).
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