Wednesday, September 14, 2011

The Market Pulse




In Monday's update, I left readers with two interpretations... one where w.5 was underway and the other had w.4 red unfolding as a possible triangle (see chart below).




In both interpretations, I told readers that I expected the market to push higher (see here ) and it has.

The first chart represents the w.5 interpretation and has been updated through the close of the daily session. Should this interpretation be correct, there will be no guessing tomorrow or in the ON session. Price will fall impulsively and in a thrusting manner.

Should this not occur, odds are that the triangle pattern is playing out. If so, price will fall either in the ON session or in tomorrow's trade to approx. 1143.25 setting up a rally where w.(c) = w.(a) at 1210.75.




And finally, here is the 5 min. chart level where I Tweeted, " watching 1194.25 for c=a " The actual high printed just beyond this key level. The low represents either w.b circle of the triangle or w.(i) of w.iii circle of w.5 red. Let's see what develops.

Best of Trading

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