Friday, September 24, 2010

Elliott Wave Update - September 25th

Here is a count I put together with today's market action. I am not too sure this particular structure because the market is becoming more volatile and unpredictable. So this count can be validate if we turn down hard below 1127 on Monday or Tuesday. It's been a rally with no news for the past 3 weeks and today it managed to rally on bad news! I've read things like the elections, to the end of the quarter window dressing to electronic trading for being the reason. Whatever it is, the bigger picture is not pretty as we do not the economy we need to sustain growing profits.

Another way to look at the market is that it is going for the upper trendline of an Ascending Broadening Wedge, basically a tilted megaphone pattern that usually reverses to where the pattern started. In this case, the 1115 area. So maybe we'll get higher highs next week after all with the possibility of 1158 to 1170 by the next Friday.

I improved my cost average today on my shorts by 4 points and I am going into the weekend fully leveraged short.

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