Feb 25th, 2010: Bulls Keep Your Eye on the Prize
Posted by pugsma on February 25, 2010
5:07pm EST: Another bear trap was sprung today at 1086, which was the 20-day SMA. Wave 2-[5]-P1 completed and wave 3-[5]-P1 is likely underway. Notice that the down channel for the alternate count has already be pierced to the upside.
15-min Chart (EOD):
60-miin Chart (EOD):
Daily Chart (EOD):
2:40pm EST: Wow, quite and explosive move off the 20-day SMA low today at 1086. Things are looking good for the bullish primary count again. 1086 was a perfect 38% re-trace of the wave 1-[5]-P1 move and it’s also were c=a for the wave 2-[5]-P1.
15-min Chart (2:40pm):
12:45pm EST: I have been watching this Diamond Reversal pattern like a hawk since the 1045 low and bullish hammer on the daily chart. We may have put in the d-leg at 1112 and now the e-leg at around 1080/1085 today. It also, works as an Inverse Head and Shoulders pattern. And of course both agrees with my bullish primary count. Notice the 20-day SMA at 1086 is holding up so far today, as well.
Daily Diamond Reversal Patter (12:45 pm):
10:10am EST: OK, so the turquois ultra-bullish count was wrong and is now eliminated. The primary count has always been the white count and it’s still looking good this morning. We are likely in the c-leg of an a-b-c Zig-Zag (ZZ) for wave 2-[5]-P1. I was targeting levels between 1070 (62% retrace of 1-[5]) and 1086 (38% retrace of 1-[5]). Based on a=20 points and b ending at 1106, we also have targets of c=a=>1086 and c=1.62a=>1074. So these match-up well with the retrace targets.
Bulls need to keep your eye on the prize which is the wave 5-[5]-P1 target at 1165, which also corresponds to the large Inverse Head & Shoulders that is now clearly in play on the 60-min chart.
15-min chart (10:10am):
60-min chart (10:10am):
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