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Nov 11th, 2009: EOD Update – Another New High

Posted by pugsma on November 11, 2009

1105 – That is the Point of Recognition horizontal resistance line from the Oct 2008 crash.  It was hit today and the SP-500 backed-off quickly.  The Great Bear Trendline is just above at 1107 and sloping downward.    They will intersect at 1105 tomorrow, Nov 12th, 2009.

The count shows 3 wave up complete now.  So the questions are:  1) does this complete the B-leg for the large A-B-C Wave [4] correction or 2) do we have 2 move waves to go to reach a 5 wave move for the alternate count?

In alternate count case the move from here is limited to about 1117, so as not to have alt:3 be the shortest leg.  1117 would also hit very close to the upper green channel line going back to 1080 area peak in September.  And if we get up and over the 1105 area and the Great Bear Trendline, some have speculated the SP-500 might not look back any further that back-testing this downward sloping line.  That is a powerful proposition for the bulls.  However, I’m still looking for a significant pull-back in a Wave [4] regardless of whether 1105 is taken out or not.

5-min Chart:

60-min Chart:

Daily Chart:

Note:  The Russel-2000 daily chart below could be pointing towards the SP-500 beginning the c-leg down to 1020 today.  Notice how the Russel-2000 is leading the SP-500 corrections by about a 1-month.  The Russels appears to have completed the d-leg of the Wave [4] corection and his headed into the final e-leg.  This is just like the May-June area on the Russel for Wave [2].
Russel 2000 Daily Chart:

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