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Oct 29, 2008 – EOD Update – Bulls Take Back Control

Posted by pugsma on October 29, 2009

Well, well, well…looks like the dip buyers were following my charts from yestersday’s close.  The buyers came back with athority today.  The support at 1042 held and it was off to the races after the great Q3 GDP number (+3.5% growth) came in a 7:30 am.  The Bears were caught running for cover and the short squeeze helped push the SP-500 and DOW-30 up over 2%.  The Russel-2000 was up almost 2.5% and the Nasdaq ended up 1.8%.

Key resistance in the 1060 to 1063 area was broken through.  And the down channel trendline was penatrated twice and closed above at 1066.  In the 1-min chart, I counted 3 complete waves up and a possible a-b-c for wave 4 in progress.  I expect wave 5 to challendge the 1074 resistance area tomorrow.  If 1074 falls the Bears will really being on the run and wave 5 could extend.  1074 is where this new wave up would violate the 4-1 overlap on a the bearish down-trend count.  After this 5th wave completes around 1074, I look for a corrective wave 2 down to a target of about 1062 (38%) retrace.  You can see this on my 5-min chart in purple.

We still need to be on the look-out for an (X) wave here in the 1065 area.  The market could then start a second ZZ corrrection down to 1030 target, green Wave [4] on my 15-min and 60-min charts.  However, I think the probably is low for this.

All together are great day in the markets for a bull, that followed my predictions quite nicely.

1-min chart:

5-min chart:
15-min chart:
60-min chart:

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