Click HERE to view current charts

Monday, November 1, 2010

Monday 11/1/10 wrap up

On the ES, so much for the triangle discussed over the weekend.  I should have known, it was too obvious.  A couple of alternatives at this point:

Alternate 1
Alternate 2

Alternate 1 has minor wave 4 (red) forming a flat with the "c" leg of that flat in progress.  The problem with that is minor wave 2 was also a flat, so the Elliott rule of alternation is violated.
Alternate 2 has minor wave 4 complete at last Wednesday's lows, with two wave 1 -2 sequences occuring since then.  Minor wave 4 is a zig-zag in this count, which satisfies the rule of alternation.  But minute wave 1 (green) is apparently 3 waves and should be 5, so that's a problem.   It is possible that we're seeing the start of an ending diagonal for minor wave 5, which would allow for a 3 wave move as wave 1.
Thus I am not very confident in either alternate. 
Meanwhile still holding long ES.  It looked like there would be a sell signal on the ES hourly Trend/Osc today during the last hour of regular trading when the ES dropped below it's uptrend line - the Dynamic Oscillator had already broken below 80.   But the rally into the close moved it back over that line so no sell signal was issued.

blog comments powered by Disqus