Oct 19th, 2010: Update 1 – Pre-market
Posted by pugsma on October 19, 2010
8:45 pm EST: ES Futures dropped to 1172 (1176 cash) on the technology (IBM and Apple) after-hours earnings news, then rose up to 1178 (1182 cash) overnight. But then this morning ES Futures dropped to 1169 (1173 cash) on the People Back of China announcement that they are raising rates 0.25 point. So it’s been a very volatile overnight ES trading session.
Based on what happened overnight, the primary count is that wave v-(5) of 3-[1]-P3 ended yesterday after at 1185.53. And now I’m expecting a multi-week correction down to about 1136 (38% retrace) in wave 4-[1]-P3.
I do however have a new alternate count in which the SP-500 could still make a new high above 1185.53. It looks like the price action since Oct 13th, could be an ascending triangle for wave iv-(5). If I’m correct, then today will be a wave e-iv-(5) drop that stays above the 1167 pivot support before launching upward to a new high. The triangle target is 1201 for wave v-(5).
SP-500 5-min real-time link: http://www.freestockcharts.com?emailChartID=b93da828-4daa-48ce-8f18-3925e2a7c5a8
SP-500 15-min real-time link: http://www.freestockcharts.com?emailChartID=dad06d9a-03b4-4535-ab09-d6b7120a5f7f
SP-500 5-min chart (EOD 10-18, with new counts labels):
ES Futures (8:07 am):
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