Wednesday, August 18, 2010

Fireworks tomorrow??

Here's where we are. Price did NOT hold the key level I identified in yesterday's post. I mentioned that if price did not hold, then it had to be a subdivided wave 2; however, I should have also mentioned that it could have been a B wave. Since price did not launch to the moon in a 3rd wave, I have to side with a B wave label.

Of course, from here I had to relabel some of my prior areas like my failed 5th wave to end minor wave 2. With that change, we have a much better 5 wave move down as the wave 2 flat scenario is out. Since we have currently retraced 50% of wave 1 and have taken 61.8% of wave 1 in terms of time to do it, we have met all criteria to start wave 3 down. Our early confirmation is to take out our wave B low (1088), which looking at the futures could happen pretty easily at the open tomorrow.

Best of luck!
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