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Wednesday, April 21, 2010

Wednesday updates

Here is another option that has been on my mind today, after seeing Daneric's longer term count yesterday, this is a slightly different count, but fits into my longer term count. That Green "B" wave is the key, and is what struck me the most about Dan's count. It is really starting to look like it fits in the picture somehow, and that is also the point the squiggles started going messy. If so, it is followed by an expanding Ending diagonal for the "C" wave. This is the most bearish option I see, but first it needs to make a new high.
After the close, The number of possibilities continue to grow with many different optional counts now. One thing though is there are not many in the way of bearish options, most of the choices I see are long drawn out corrective waves slowing heading higher, and a couple where we would make new highs very soon, then get bearish, but for now IMHO, the odds are pointing to new highs, one way or another. My favorite option, and that is not by much, is that we are in a "B" wave (red) that will be similar to the structure we saw back in November. Stuck in a tight trading range for a few days, and after that is done with, we head higher in the "C" wave, definitely making new highs. The waves have been very hard to count for the last month, lots of over-lapping corrective waves, and waves that are bending rules, all with multiple ways to interpret the squiggles. It is starting to feel like the last month has been one large corrective wave, but it is going in the same direction as the larger trend, not what correctives are supposed to do.
I still believe the trend is neutral as no major highs, or lows have been breached for the last week, and until either a new high is put in, or we break below 1175.12, the trend is stuck here waiting for direction.
Breadth for the day was only 1.34:1, advancers, with no follow thru from yesterday's high bullish readings, back to flat again.

Click here for a live, and updated chart!!!
7:44, The SPX has finally broke out of the short-term bullish Fib fan.

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