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July 7th, 2010: Update 6 – EOD

Posted by pugsma on July 7, 2010

5:15pm EST:   This daily chart looks promising for the bulls. 

SP-500 Daily Candles with McClellan Osc (EOD):

5:00pm EST:  Oh yes, that was fun.  Just as predicted at the EOD yesterday, the wave iii-(3) materialized today and it exceeded my initial target of 1050 to close at 1060 !!!   With Friday’s EOD call for 1042 on Tuesday and Tuesday call for 1050 or above today, that is my best back-to-back trading days in a long time.  I hope everyone else joined in the bull party and profited as much as I did from it.  The McClellan and MACD positive divergences were the tip off and the market was considerbally over-sold.  Also, you remember that wave (4)-[C]-P2 triangle in the 1070 to 1080 area from about a week back (see the 15-min chart).  The perma-bears E-wavers thought it was an a-b-c ZZ for wave (2) and thus got snookered at the 1010.91 low thinking we were still in wave (3) and not an extended wave (5) of my primary count.   That was another clue to properly calling the July 1st low as the bottom of the wave.

From here we need to watch the 1042.5, wave i-(3) high, on any wave iv-(3) pull-back.  I think ultimately, wave v-(3) will target the 1071 (50% retrace) level, which is also in the gap down area of 1072 to 1074.  I still have the 1085 (62% retrave) target for wave (5)-1-[1]-P3 to complete on or below OPEX Friday of July 16th.  In fact I may have to raise this target to closer to 1100, where the SPY Max Pain resides.  But let’s see a few more waves first.

Enjoy your evening.

SP-500 15-min Chart (EOD):

SP-500 60-min Chart (EOD):

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