Steve, Could you please draw

    Another Alternative View

    Posted by junkie on 25th of Feb 2010 at 04:38 pm

    Steve, Could you please draw a completed sample pattern for the leading diagonal? I could visualize it for an up-sloping channel, like we had in January on $SPX.  With a down sloping channel it's a bit different. I view this leading diagonal as a C down, or {1} of 3 down. I am not sure what another bullish count -- besides C down -- it could fit into. Thanks!

    A good description of the leading diagonal pattern

    Posted by junkie on 26th of Feb 2010 at 09:29 am

    http://thepatternsite.com/EWleadingTriangle.html if anybody wishes to read about it

    Junkie - the LD is

    Posted by steve on 25th of Feb 2010 at 05:01 pm

    Junkie - the LD is shown on the chart with the pink trendlines.  

     

    Steve, Is it (the LD) 

    Posted by junkie on 25th of Feb 2010 at 05:13 pm

    Steve, Is it (the LD)  complete now? I am missing the reference of "diagonal". I am sorry but this is confusing. Without using Elliotese, this looks like a distribution pattern after the uptrend -- through the up-channel -- was completed.  Now it should form some sort of a rectangle before breaking in earnest to the downside and retracing the most of its advance, like you said. That would be a retest of the lows at 1044 or a test of of the MA(200). Thank you for your time!

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