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Feb 2nd, 2010: Corrective Wave Nearing Completion?

Posted by pugsma on February 2, 2010

4:15 pm EST:  There’s a pretty good case that this corrective wave bounce (B-leg) is near completion.  There is possibe 5-3-5 count for this B-leg on the 1-min Chart and a rising wedge pattern.  And today’s the advance was stopped by heavy resistance in the 1103/05 area.  Also the 13-day EMA resides at 1103, helping to contain the move up.  The 34-EMA is at 1111 and there is more resistance in the 1110/1115 band.

The primary count is left unchanged (see 15-min chart) that his move up was only the a-leg of B, but as stated above the full B-leg could be in the books here at 1103/05.  When we get a pull-back, look to the 1085/90 area and seee if a significant bounce occurs are not.  A bounce at 1085/90 would indicate we have more room for the c of B-leg to complete and targets in the 1110 to 1120 might be hit.  After the B-leg is complete the primary count has the C-leg  of this large correction targetign the 1030 /40 area.  The 60-min chart now shows an new interesting set of channel lines that project the correction down to the 1030/40 area. 

However, take note that there is a possibility that the 1071 point was accualy wave 2 of [5] of P1 and wave 3 of [5] of P1 is underway, which will target the 1200 area and surpise the bears.  And ultimately if either 1071 or 1030 area holds for this correction, then wave 5 of [5] of P1 could project to 1230 to 1300 (see alternate count on the Daily Bull Chart).

Daily 13-day vs 34-day EMA (EOD):

1-min Chart (EOD):

15-min Chart (EOD):

60-min Chart (EOD):

Daily Bull Model (EOD):

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