So many ways this could play out.Here are some thoughts on just
2 of the many options at hand.
Today's low could be the end of a wave 4 correction and we are
impulsing up off today's lows....having corrected more than .786 of
the drop off the 1106.42 highs, the odds start dropping that this
is a "b" wave with in a larger C. loom at that and it looks like we
have a 1,2, and 3 waves up, and 3 looks very impulsive to me. SPX
could go to new highs to complete wave 5 of C of 2 up (or maybe
just wave 1 of 5 of C of 2). And if it closed and topped at new
highs tomorrow, well, that would make McHugh's Phi mates calling
two tops in two weeks. Wave 5=wave 1 around 1120.80, and .618 of
wave 1 at 1107.50.
On the other hand, the SPX could have seen wave 'b' of C top and
may drop hard in a C wave. I posted extensively on this option
today. I am having a harder time believing it as the STO have all
dropped below their 20s and rebounded hard today but still not
overbought. Plenty of opportunity for negative divergences all over
the place but none quite there yet.
But tomorrow is another day. Steve I like your diagonal down
option!
What a day!
Posted by perthx on 25th of Feb 2010 at 04:31 pm
So many ways this could play out.Here are some thoughts on just 2 of the many options at hand.
Today's low could be the end of a wave 4 correction and we are impulsing up off today's lows....having corrected more than .786 of the drop off the 1106.42 highs, the odds start dropping that this is a "b" wave with in a larger C. loom at that and it looks like we have a 1,2, and 3 waves up, and 3 looks very impulsive to me. SPX could go to new highs to complete wave 5 of C of 2 up (or maybe just wave 1 of 5 of C of 2). And if it closed and topped at new highs tomorrow, well, that would make McHugh's Phi mates calling two tops in two weeks. Wave 5=wave 1 around 1120.80, and .618 of wave 1 at 1107.50.
On the other hand, the SPX could have seen wave 'b' of C top and may drop hard in a C wave. I posted extensively on this option today. I am having a harder time believing it as the STO have all dropped below their 20s and rebounded hard today but still not overbought. Plenty of opportunity for negative divergences all over the place but none quite there yet.
But tomorrow is another day. Steve I like your diagonal down option!
perth, Your detailed and coherent
Posted by junkie on 25th of Feb 2010 at 04:46 pm
perth, Your detailed and coherent description speaks well to me. Perfect!