Monday, September 27, 2010

Daily chart shows 5th wave

Sorry for leaving everyone hanging this weekend. It was a crazy one here, and I never caught up. I did have a few minutes to look at the charts and the daily is flashing a big time 5th wave at today's high. Going from the dailies down to the hourly chart and making some modifications, I now have our subminuette wave 4 ending last week. Do we go to a wave 2/B down now or are we going to start minute wave 3? Price action will let us know for sure.

Target for a wave 2/B down is 1096 area and a daily RSI(5) between 30-40. Target for a minuette wave 1 (assuming minor wave 3) is in the 1000/1020 area with a daily RSI(5) showing divergence with a low in the 20s.

Let the market lead the way - but I sure would like to see minor wave 3!
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