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Dec 30th, 2009: Alternate Rectangle Count. What If?

Posted by pugsma on December 31, 2009

OK.  So every bear and his brother has capitulated and every bull is thinking about sugar plums and candy canes for 2010.  What if the top of wave 1 of [5] of P1 is in?

On the 60-min chart going back to the begin of this move higher from 1029, I have recounted the waves and the rectrangle wave (4).  I have tightend up the bottom and top of the box allowing for some overthrow.  The new range is between 1087 and 1111 with a target of 1135.  I can make a solid case that the wave (5) thrust out of the rectangle is over at yesterday at 1130 or maybe tomorrow at 1135. 

Now look at the Daily candle stick chart with indicators.  Notice, that the rectangle can be tighted up even more to be between 1090 and 1110.  This daily rectangle has a targtet of just 1130.  And look at the MACD histogram bars starting to roll-over and the Full STO already showing a bearish cross.  And look how light and decreasing the volume has been on the entire thrust up from 1093 for this wave (5).

And when volume returns next week the markets may sell off, when everyone is expecting a big push up.  Something to watch out for.  My target of wave 2 of [5] of P1 is aboug 1065 some time in late Feb or early March.  So let’s see if we get a nice big corrective wave down early in 2010.

Also, how do you like the new white background?  🙂

60-min Alternate Rectanlge Count Chart (EOD):

Daily Candle Stick with Indicators, Alternate Rectangle Count (EOD):

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