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Nov 24th, 2009: EOD Charts – Consolidation

Posted by pugsma on November 24, 2009

The SP-500 has been consolidating between 1086 and 1113 since Nov 11th.  Today was more of the same as support held in the 1097 area and the day finished back were it began at 1106.

As I reported in my afternoon update, it looks like this 2 week long consolidation has taken the from of a large contracting triangle.  Triangles can form in waves 2 and 4.  So, while I’ve been thinking this is a wave 4 triangle, it could actually be a wave 2 triangle.   In either the case of a 2 of [5] or 4 of [5], the SP-500 should move higher.  The amount the market moves higher depends on whether or not we are in wave 2 or 4 of [5].  So, tonight I have put out the longer term 60-min and Daily charts showing some targets depending on whether or not it’s a wave 2 or wave 4 condition.  I have 1125 targeted if it’s a wave 4 and about 1170 if only a wave 2 of [5].

And unitl 1113 it taken out, there is still the possibility that the top is in for now and the SP-500 heads lower into December.  We have to continue to stay neutral in the 1094 to 1113 range until the direction is resolved.

60-min Chart:

Daily Chart:

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