Here’s the leading candidate for
an EW count. It’s bullish because it is tentatively calling
yesterday’s an impulse wave at least a zig zag leading to higher prices
or a new historic bull (I think).
http://4.bp.blogspot.com/_TwUS3GyHKsQ/SuoMhMBzG1I/AAAAAAAACYA/DfI90POEwYg/s1600-h/spx10.png
Perhaps an alternate? An irregular
flat at the bottom of your primary count shows as (v). That (v) would be the
'b' of the proposed irregular, 'c' would be ending with the 5th wave from
yesterday and the alternate (iv) at the level of the triangle iv.
http://www.screencast.com/users/Virginia_Jim/folders/Jing/media/6e3ad278-6107-4845-821b-96f1e4487306
The key is how you count those last two tiny waves
at the very bottom Wednesday, are they both 3's? If so, you have a 3-3-5 from
that 'a' to the 'c' that will be ending today.
http://www.screencast.com/users/Virginia_Jim/folders/Jing/media/7d9decca-44ff-434e-922d-3c2045693189
So, another small wave up might, in the alternate,
lead to a classic extending fifth wave. It's a stretch but would fit right in
with the unexpected nature of a cycle degree 'c' and make a statement that
primary 3 has begun.
If correct (VERY UNLIKELY), this morning would be
one squiggle up, then a decline on substantially elevated volume. If volume
exceeds the last 9 months daily volume, my studies indicate Monday could become
crash worthy. Watch what happens at the level of the prior wave iv and note
whether there's appreciably higher volume. Higher volume (40% above the 10 day moving
average) is a huge warning signal that preceded the two great crashes.
And, btw, that 1070 level is pretty darn close to
the March 9, 2009 upward sloping lower trend line of the ascending wedge that
is being re tested and kissed. Fail to re achieve the ascending wedge
implies the outcome associated with the perfect ascending wedge storm (see my
post from last night).
If not, it’s just another day in paradise.
Jim
