S&P Futures: Market Wrap for September 13, 2010

Good Evening. As a reminder I am only posting to the blog on a M-W-F basis but you can get my intraday thought by following me on twitter. The URL is : https://twitter.com/elliottwavelive

From my week in review that I previously posted, I was anticipating an ending diagonal to form today. With today's gap open and persistent strength, the diagonal interpretation has given way to the other interpretation of the wave structure that I brought to your attention... a iv wave triangle. Given this alternative I indicated that greater upward potential could hunt stops above 1126.75.


Earlier today I posted preliminary projections for wave v to my Twitter account. I can now revise those with somewhat greater clarity. My projections using the diagonal interpretation were 1119.25- 1121.76. Looking at the current wave structure as depicted in the chart wave v should terminate according to the following Fibonacci extensions:

wave v = .618 waves (i) - (iii) at 1141
wave v = 1.618 wave (i) at 1123.52

Looking at daily cycle analysis, upper projections point towards 1134.75 +/- 1% which is agreeing with my Fib projections. As always, these targets are not magnets but areas that one should focus upon if the market approaches them. It's what price does after encountering the key areas that matters... meaning we should see an impulsive 5 wave structure if this countertrend rally has completed.

Best of  Trading