Thursday, January 28, 2010

5 waves complete?

Well, it was interesting because I had a nice 5 complete waves on the hourly chart although my short term chart was showing one more low; however, I always defer to the higher timeframe chart, so I called it good. But the market wasn't ready and boy did it put in another strong move to new lows this morning. Then after trying to work itself out of a hole, the market fell apart at the close pushing the futures back to the lows of the day.

So, here is what I have:

5th wave is extending. This is my primary scenario as the market should have responded much better to the buy signals that were flashing all day on the hourly divergences. When these divergences are ignored by the market, it generally signals a 5th wave extention as divergences show up in the 5th wave. This would put us in wave 3 of minuette wave 3 of minute wave 1 tomorrow. It could be another doozy dropping to next key support in the 1040 area.

5 completed waves. This of course has the lows holding with immediate strength. Look for confirmation with a move above 1092 in the morning.
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