Tuesday, February 23, 2010

Wave 2 should be over

The move off of the correction highs was impulsive and that should mean the beginning of minute wave 3. However, there are a couple of ways to look at it from here.

This is my primary count: we are in micro wave 5 of subminuette wave 1. This should bring in a lower low in the a.m. session. Should wave 5 subdivide (quite possible), then for a strong trending day tomorrow.

Initial target range for wave 5: 1086-1091 with a shot at 1082 without subdividing.

This is my secondary count: we finished off subminuette wave 1 and are currently in subminuette wave 2. In this scenario we should see strength in the morning with a retest of the breakdown. This should be the high of the week.

Subminuette wave 2 target: 1104 with a possible stretch to 1108.

Should we close above 1108, then we may be in a situation where primary wave 2 is not complete. I'll address it should it come up tomorrow.
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