Sunday, March 6, 2011

Weekend Update

I realize there were some violent swings during the week, and I apologize for not chiming in with my views on market action. So, now that I've had some time to analyze the charts, here are my two scenarios:

Primary Count: Monday kicks off a 3rd of 3rd down. It starts with an acceleration gap below Friday's low and possibly below last week's low. This should be pretty easy to invalidate based on where the futures are trading tomorrow morning.

Secondary Count: Friday finished of a 4th wave triangle and began the 5th wave. It only matters that the market opens above 1315 and takes out 1320 within the first 15 min of trading.

The bearish count takes the primary count due to the VIX movement, the weekly reversal, Thursday's double top failure. We soon shall see...
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