Aug 31st, 2010: Update 4 – EOD
Posted by pugsma on August 31, 2010
7:00 pm EST: In anticipation of the SP-500 heading back to it’s “HOME” position near 1105, here is one of my favorite bands the Freddy Jones Band performing “Home Thing” Live at the North Avenue Beach in Chicago.
5:25 pm EST: Well, another mixed up day to end August; how appropriate. The SP-500 again tested the 1040 support and held (not once but twice) today. The first test came early in the morning at 1040.88 and the second one came late in the trading day at 1044.02. Not to mention, there was also a test of ES 1037.50 (1039.50 cash equiv) over night. Notice each test was a successfully a higher low. That’s bullish. That’s 3 tests of the 1040 support in under 24 hours that held. Someone (PPT) or something (GS Computer) does not want to let 1040 fell. That is very good news for the bulls. And as one subscriber put it: “The bears better break 1040 today or the bulls are going to take their drinks and their prom date too.” Go Bulls! Or as as I’m like to say: “Stocks Up!, Boiler Up! Hammer Down!”
The primary count is that sub-minuette wave 3-iii-(1)-3-[1]-P3 is underway after sub-minuette wave 2-iii-(1) bottomed at 1044.02 late this afternoon. I have a target of between 1067 and 1074 for this wave 3-iii-(1). And for wave 5-iii-(1) I have a target of 1086 to 1094. Finanlly, I’m looking for wave (1)-3-[1]-P3 to reach 1100 to 1110 shortly after the Labor Day weekend (Sept 7th to 10th). There is double positive divergence on the 60-min chart MACD signal line and triple positive divergence on the MACD histogram. Both are very bullish.
I will keep the alternate count (in red) of a possible bearish double ZZ abc-x-abc that, if 1040 is taken out decisively, could head for a target of 1024, where (c)=(a) of the second ZZ. This alternate is still reasonable as long as the SP-500 stays in the purple bearish down channel lines. The upper purple line has fallen slightly 1060 now, so a test of this upper channel line could be coming as early as tomorrow. The bulls need to push through 1060 and then close above the 1063 to 1067 gap.
Finally, I would like take this opportunity to say thanks to the outgoing August subscribers and welcome to all of the new Sept/Oct subscribers. And if anyone wants to get in the $40 Sept/Oct subcriber deal ($20 savings over $30 per month standard rate), just drop me an e-mail to pu_gridiron@yahoo.com.
SP-500 15-min Chart (EOD):
SP-500 60-min Chart (EOD):
SP-500 Daily Chart (EOD):
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