Tuesday, August 30, 2011

Before The Bell




Here's an updated chart showing the subdivisions of the emini S&P futures at the 60 minute chart level. I'm still looking for an down up sequence that supports my blog post from last night. If you missed the call, read it here.


One additional thought in the way of an alternate count. It's possible to make a compelling case that the corrective structure is a flat. Notice the yellow highlighted area indicated that the decline from 1206.25 was an 80% retracement of the previous swing. An 80% retracement is a common retracement level for a flat. Knowing this, it's possible that yesterdays high met the minimum requirements to complete the flat correction. However, just because I could count from 1166.25 doesn't mean that w.iv circle is complete. We need to see confirming price action. Breaks of 1192 , in five waves could be the first clue that a flat correction had unfolded rather than the double zig-zag (W-X-Y).

Let's see what plays out.

Best of Trading


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