Oct 8th, 2010: Update 2 – Morning
Posted by pugsma on October 8, 2010
11:20 am EST: Here is the VIX falling wedge that has been on going since the April 2010 high of 1220. If the VIX drops below 20.0, the bulls when a major battle in the war to break-out towards new highs above 1220.
VIX Daily Chart (11:10 am):
11:00 am EST: Updated 5-min 15-min chart links. Starting to break-out higher now to 1161, so maybe it’s a 3-v-(5) move after all. VIX is getting hammered, down -3.2% to 20.87. Bears have to be getting very nervous here. If the VIX drops below the 19.5 to 20.0 range, it’s a major bull break-out confirmation. And the SP-500 could extend well beyond 1177 in wave 3-[1]-P3 if the VIX breaks down. Remember my 1190 to 1200 stretch target for this wave 3-[1]-P1.
SP-500 5-min chart real-time link: http://www.freestockcharts.com?emailChartID=e7fe52ad-8ac3-45e1-ad35-d33209faebb9
SP-500 15-min chart real-time link: http://www.freestockcharts.com?emailChartID=fbba605e-0dbd-4ef0-becc-27578e4b2256
SP-500 5-min chart (11:00 am):
SP-500 15-min chart (10:55 am):
10:40 am EST: Alternately, there could also be a wave iv-(5) contracting triangle forming over the past 3 days. It might take most of today to play-out, leading to a big push higher on Monday/Tuesday next week. This alternate triangle for wave iv-(5) has the same 1177 target for completion as the larger wave (4) triangle.
If this alternate triangle wave iv-(5) count is correct, you might as well set your stops and go out and enjoy the nice weather. Nothing significant is going to happen today. It’s going to be 80 °F here in Chicago today and next 3 days! Indian Summer has arrived in the upper Midwest. 🙂
SP-500 5-min chart (10:30 am):
10:10 am EST: The SP-500 has hit 1161 in the cash market. I’m thinking this might be the end of wave 1-v-(5) and we’ll see a pull-back to about 1155/1156 in wave 2-v-(5), before heading towards 1168 in wave 3-v-(5). The SP-500 must remain above 1151.41 for this count to remain valid.
SP-500 5-min chart real-time link: http://www.freestockcharts.com?emailChartID=b38190ad-37df-48e2-b607-882e827d62f9
SP-500 5-min chart (10:00 am):
Sorry, the comment form is closed at this time.
You must be logged in to post a comment.