Sunday, June 27, 2010

Weekend Update

Friday brought prices right to the front edge of my wave 1 target zone. There are a few different ways to count the price action on its way down depending on how much you consider the globex session etc. In the end though, we should have a wave 1 low (I'm labeling it as minute) and we should be in the wave c of 2 tomorrow (assuming the selloff on Friday holds).

This gives us a wave 2 target beginning at the 38.2% retracement (1092) and all the way up to the 50% retracement (1099). However, the energy that is being built up could be released at any time and there is no guarantee of an easy short entry.

The support line on the chart is where prices will accelerate to the downside once that support line has a confirmed break. From there it should be a quick drop to 1040 where some buyers will try and catch the knife, and after bouncing around a bit, price should really go.
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