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Wednesday, August 18, 2010

Wednesday 8/18/10 wrap up

My Elliott count yesterday looked to easy, turns out it was.  The pattern now looks very much like 5 waves up from Monday's lows, which likely makes it wave A of a correction.  The alternative is wave 1 of a new rally sequence.

The Trend/Osc system gave a sell signal last night when the Dyn Osc dropped below 80 and prices closed below the trend line, ES was shorted this morning as a result.

However, prices rallied up to yesterday's high this afternoon, which reset the trendline and the Dyn Osc and the short ES was liquidated as a result.

Still looks like a bearish situation to me, but we may need a little more corrective rallying for the next day or two.

2 comments:

  1. That C wave from Tuesday chart was rather long, like twice length of A, more like a 3. Thus we could have an impulse. Meaning eventually higher we go. Nontheless, I am still short.

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  2. As it turns out you're correct, it more likely was a wave 3. However, I have to say again that with the low volume in recent day's it's hard to see how any rally can be sustained.

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