Saturday, 3/31/12 update

All three ES possibilities presented in the Thursday update are still in play. If the ES rallies strongly next week and moves sharply and significantly up through last weeks high at 1419.75 then Alternate #2 & #3 can be eliminated.

Alternate #1

Alternate #2

Alternate #3

However, for the very immediate future it looks like the direction will be down Sunday evening into Monday at the least. This is because the drop from the Friday morning high at 1406.25 into the mid morning low at 1395.75 as well as the ensuing rally from there into Friday afternoon's high at 1406 are best counted as 3 wave moves, so the whole thing looks like waves "a" and "b" of a 3-3-5 flat type of structure. This would portend a 5 wave "c" leg in the immediate future that should bottom below the wave "a" low at 1395.75.


Supporting this thought is the recent behavior of the Vindicator Buy/Sell which is showing selling pressure ascendant over buying pressure by the end of the day Friday.