Early action is down ahead of the FOMC announcement of US interest rates. There's allot of buzz out there as to whether the FED will confirm that the US economy has slipped. Will they lower rates through quantitative easing programs? Who knows. The wave count is or guide.
Here a possible scenario (see chart) that could play out before the FOMC announcement at 2:15 p.m. A decline to complete an expanded iv wave of v of C (red), to the 1.382 reverse fib. extension (1114.75) or a test of the lower boundary of the diagonal (1112.5), followed by a rally to complete wave 2 (blue). Allot could certainly happen between the time of this post and the market's open to negate the possibility.
Although less accurate, I thought it might be interesting to post the Fibonacci time relationships and Time cycles for wave 2(blue) and the current C (red) wave. Keep in mind that these projections are +/- (1) trading day.... meaning the termination of wave 2 (blue) or wave C are +/- (1) trading day for each date given. This information should only be used as a confirming tool, rather than an absolute.
Possible Dates of Termination
Wave 2 - 8/17/2010
Wave C - 8/10, 8/11, 8/16 or 8/18
Best of Trading
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