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June 2nd, 2010: Update 3 – Intra-day Mid-day

Posted by pugsma on June 2, 2010

11:30am EST:  OK, I have a new thought on the 2nd alternate count in red.  I think we might be in the C-leg of a large A-B-C-D-E contracting triange for wave (4)-[C]-P2.  In wish case we’ll test the 1082 to 1090 area,  a couple more times before the bottom falls out and we get a big drop down towards the 1020 to 1030 area.  The triangle measure 62 points and would drop from the 1085 area for a target of 1023.  This wave (4) triangle would be similar to what happened on the way up from the Feb 5th low of 1045 to the April high of 1220.   If you remember, there was a wave (4) triangle that formed between 1150 and 1180 before the burst to the new highs.   I think the same thing maybe about to happen here in reverse.  Triangles often occur in wave 4’s and confuse alot of traders.   If we get the start of the big drop the bears will pile on short, and this will be the fuel necessary to get the wash-out low and set-up the next bull run higher.  Just something to keep an eye on if the primary count does not get going in an impulse move up to the 1115/20 area.   If we fail at the 1090 neckline again, it could be this decisive move down towards 1020/30 of the 2nd alternate count.

15-min chart real-time link: http://www.freestockcharts.com?emailChartID=79af3dff-eae4-47a1-94f3-fb50f5f46ebc

15-min Chart (11:30am):

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