Sunday, September 19, 2010

After options expiration Friday...

Well, going strictly by the charts, we appeared to have a triangle of some sorts on Friday as the market makers pinned the charts where they wanted them to be. If we break lower Monday, then my scenarios go like this:

Primary: We had some kind of complex subminuette wave 4 and price finds support in the 1105 / 1115 area. This would give us a 15-25 pt correction, test our hourly 34 and set us up for a wave 5.

Secondary: The choppy action of last week was it and we should go down to the 1090 / 1095 area. Anything more than that though, and we are looking at our more enticing bearish scenario.

If we break higher on Monday, then we had our wave 4 and any reversal of a test of the new highs is VERY shortable.
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