Thursday, February 11, 2010

Market is now pushing upper boundry...

First off, I have to let everyone know that based on the price action this morning, I decided to change my corrective count to a B wave triangle consistent with what some of you have suggested and it also lines up nicely with the price action. You see, a zigzag should stay in its channel, and this morning we broke the channel but launched upwards off what would be an 'e' wave in a triangle and the price action was consistent with the move out of a triangle.

Now I know price is now reaching the upward boundries of my primary count, but I will stick with it until the market can get a daily close above 1091.

Otherwise we're in what looks like the last parts of the move. Either our subminuette wave 4 has some more work to do (I think it does) or it finished near the close. I'm looking for wave 4 support at the hourly 8 SMA, but we shouldn't get two consecutive closes below that MA until after our wave 5. We may even work it out during the overnight session around ES 1072/1073.

Overhead resistance is dead ahead from 1081 all the way to 1091. It should be formidable especially with the market as overbought as it is. If the market cuts through it, then you know we have something very different on our hands.

Best of luck!
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