Wednesday 4/6/11 wrap-up

ES looks very much like it's forming a top.  There are several ways to label the action over the last few days, but the bottom line is upside momentum has quite obviously waned.  The ES sort of looks like it has been forming some type of ending diagonal, but at this point that's only a possibility.

ES - hourly

Silver
Silver has continued it's strong ascent after the short correction of early March.  That correction is currently labeled as Intermediate W4 (purple) of Major W3 (blue) which started in Apr 2009.  But it's also possible that Minor W5 (red) is extending and that the March selling was just Minute W2 of that move.  Either way the trend is up for now and there's a distance yet to travel.
If in fact the March pullback was Inter W4, then a likely target area for Inter W5 is 42.615 (2 x Inter W1) to 42.851 (.382 x Inter W3).

SI - daily

On the hourly chart it appears that a Minor W1 & W2 followed by a Minute W1 & W2 are complete since the mid March low.  That would put SI in Minute W3 of Minor W3 which means that more powerful bull action is still likely.

SI - hourly