Monday, August 30, 2010

Tomorrow shows us the way...

Wow, I was totally expecting the bulls to come in at the open and run this up. Instead, price just kind of drifted lower all day with every little rally being dumped on. We ended the day right at the 786 retracement. This leaves us with two very obvious primary counts:

1. ST/MT/LT Bearish ;-). Wave 1 of 3 subdivided as I explained in my morning post, and we have now entered wave 3 of 3. Today was a drift but tomorrow and Wednesday starts the pain, and we see the bulls crying uncle all the way to 950. Price just get a little bounce in the neighborhood of 1040, but not much more than 38.2% retracement. Then the wheels fall off the bus.

2. ST/MT Bullish. We gap up tomorrow and maybe back test, but shouldn't. Once the market gets above 1060, it should really pop as the market enters wave 3 of 1 of C.
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