Wednesday, June 23, 2010

So far we are in an impulse...

...and I'll go ahead and keep that count until proven otherwise. Right now we only count 3 waves down, but a lower low tomorrow would put in 5 waves. We have good ratios between each wave at the appropriate degree, so that also gives me confidence in the count.

Since we haven't had an acceleration gap down yet, I would love to see one tomorrow. Let this run down to at ~1070, and then that gives the market a perfect target for a wave 2 before this thing really gets going. I know there are lots of counts out there calling this a B wave, and I mentioned today that I needed to see some more price action to the downside to start filling in the rest of the needed boxes to count this as an impulse. We are now only one more lower low to complete that requirement.

Should we move above the 34 SMA (hourly) before hitting a lower low, then we finished a B wave. Currently that SMA is at 1109.25 and falling about 1/2 pt per hour at the current slope.

Best of luck!
blog comments powered by Disqus