Tuesday, August 17, 2010

W5 tomorrow?

Based on my count, the retrace from the high today of 1100 to 1092 is W4. I sold all longs and went short at 1095 and 1096 which were in my target range. I missed the minuette W5 on the W3 but it's ok. So tomorrow we can probably finish this counter-rally business with a finally pop to the 1100-1110 area and then we will see if the bearish count is right.

From analyzing several technical indicators and counts, we do seem to be setting up for a cascade type of sell off which is in line with the Minor 3 count that will take us to the low 1000's or maybe even 900's. Below is a P&F chart that also points to the same target. While I am not so sure we are in Primary 3, odds are that we will see a Minor 3 impulse to the downside in the next few days.

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