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Tuesday, April 20, 2010

Tuesday updates

I was running thru all my private charts after the close and come across this one. The NDX, which is very close to breaking above the very last point of major resistance and making another higher high before testing the all-time highs, if the bears can not get their act together, any hopes for a P3 will be gone soon., BTW, Apple just blew away earning!!!
After the close, The SPX is throwing wrenches at my counts, after expecting a corrective wave up for a "B" wave, or my second option, a 2nd wave up, the SPX has continued printing out an impulse wave up, and almost now to the point of completing a five wave move up, although it could still morph into a double zig-zag, seven wave correction right now it is up in the air how it would fit in having a impulsive wave coming up from yesterday's low, other to say that it most likely will make a new high. The trend is still neutral until we do make a new high, or the market sells off and breaks below 1175. I still have that feeling that we will have a trading range between these levels for awhile, tracing out a larger "B" wave.
Breadth for the day was 4.41:1, advancers, impressive for this stage of a two month old
rally where momentum was waning a week ago. I see a slight possibility (VERY SMALL) of a larger bull move, where this correction might be another 1-2, setting the SPX in a iii of 3 wave up that is just starting. This should be apparent very soon if we have a couple extremely large rallies with follow-thru days to the up-side, with even higher breadth and volume numbers then we had today, but I am still leaning towards this wave up turning into a corrective, before a new high is made.

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This new bullish Fib fan on the SPX is very steep, but as long as it stays with-in the fan, the short-term is up, a break out of this fan would be a good sign that this micro-wave is over. BTW, there is no over-head Fib fan resistance until 1212.
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8:36, The move up from 1183.68 is looking much more impulsive then corrective at this point. Maybe this is just the "a" wave of "B" up?. 1183.68 is now short-term support, which was also the 20 day MA, which gives it a little more kick, and 1175, is still a major support level for the bulls. Breadth is currently running 3.49:1, which is very respectable bullish breadth. Along with the gap up for the SPX, the VIX also had a large gap down.

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