My chart below shows a completed abc expanded flat off the
1097 high (not 1099)
This would imply that the 1088 low this morning was a 3-3-5
(abc) expanded flat off the 1097 wave 3 peak. Notice the
b-wave of the flat exceeded 1097 to 1099 and then the c-leg fell
below the a-leg low of 1095 to 1088. This is very typical
behavior of an expanded flat where b=1.22a and c=1.62a.
This wave (4) could also morph into a triangle if it drags on in
time.
To get another push up as I discussed below, the SPX should
really close above the 50 day MA at 1094. Clearly, the upside move
is losing momentum and starting to wane.
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abc corrections
SPX View
Posted by bensjoyce on 14th of Jul 2010 at 12:30 pm
Steve- In abc corrections must c always (or usually) is lower than a??
Fomc minutes at 2pm. I was thinking the minutes may complain or worry about the economy, causing the S&P to go down in c.
must c be lower that a? can it stop above a? ie does not take out todays lows.
Bensjoyce
Posted by steve on 14th of Jul 2010 at 12:38 pm
My chart below shows a completed abc expanded flat off the 1097 high (not 1099)
This would imply that the 1088 low this morning was a 3-3-5 (abc) expanded flat off the 1097 wave 3 peak. Notice the b-wave of the flat exceeded 1097 to 1099 and then the c-leg fell below the a-leg low of 1095 to 1088. This is very typical behavior of an expanded flat where b=1.22a and c=1.62a. This wave (4) could also morph into a triangle if it drags on in time.
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I will post a triangle diagram above.
Follow up Comment
Posted by steve on 14th of Jul 2010 at 12:48 pm
To get another push up as I discussed below, the SPX should really close above the 50 day MA at 1094. Clearly, the upside move is losing momentum and starting to wane.