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Wednesday, April 28, 2010

Wednesday updates

After the close, With NO follow through to yesterdays sell-off today it really ups the odds that is was only a brief correction. Since I posted a bearish count yesterday, I thought a would follow-up today with a bullish count that I have been watching and posting in the CiL, but this is the first time to put it in the blog, it is only a optional count right now. The main reason I like it is the over-all structure looks impulsive in the long-term daily chart, and this correction would fit a 4th wave correction. The biggest problem with this count is that blue 5th wave, although it can be counted as an ending diaganol for that green 3rd wave, it still looks funny in the squiggles. If that 5th wave (blue) were a nice five wave impulse up to the green 3, the larger wave from 1044 would be a picture perfect impulse wave. The indicators are also supporting the idea that we have room to run to the upside now that they have turned up from over-sold territory.
Breadth for the day ended at 1.48:1, advancers.
We never made any lower lows, nor higher highs in the short-term today, leaving the trend as neutral. We need to make a new high to put the trend back to bullish, or break below 1175.12 to become bearish. If the count in the chart above turns out correct, that final 5th wave could reach that 1228 level everyone keeps talking about, the 61% retracement from the all-time high.

7:48, Here is an interesting chart of the BKX, overlaid with the Fib fans. Hard to say that the fans do not work when viewing this chart.

Click here for a live, and updated chart!!!
7:28, On the longer term chart, one of the bullish fan lines was broke to the downside yesterday, if not quickly recaptured, would become resistance.
Click here for a live, and updated chart!!!
7:13, Added a bearish set of fans now that there is enough data to properly set one. Usually when the fans are this steep, there do not stay valid for long.


  1. Support SP in 1180 if it is broken can you say that the change in short term trend was negative to 100%.

    more analysis and comments on my blog:

  2. The support of the sp ran nps 1180, making it a stand with a great importance in the short term.

    More analysis in