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May 31st, 2011: Update 2 – Morning/Mid-Day

Posted by pugsma on May 31, 2011

11:30 am EST:  Here are the updated charts with the new primary count (white).  I’m looking for a minor 2 of [5]-P3 bull-back to test the 1328/1333 support area, before minor 3 and 5 of major [5]-P3 continues toward the 1371 to 1386 final destination.  It’s very possible that this run to 1371 to 1386 could unfold in rapid fashion over of 5 to 7 days in early June.

However, we need keep a watch on the bearish alternate count (red) if the 1345 to 1358 area resists this move higher. For this count, the move off the 1371 May 2nd high was a Leading Diagonal (LD) for major of [A]-P4.  In which case this bounce higher is major [B]-P4 and could be labeled complete at 1344.75 this morning for a near perfer 62% retrace for the move from 1371 to 1312.  Following this bounce, there will be a very nasty 95 to 100 point drop down to 1249 for wave [C]-P4 over the next 3 to 4 weeks.  This red count also works well with the large head and shoulder tops that have formed on many indices and stocks over the past few months.

We continue to be at a very critical juncture in the markets.  It’s important for the near term bullish primary count (white) that the 1329 support area (also near the 50-day SMA) is not lost again on a closing basis.

 

SP-500 5-min chart (11:20 am):

 

SP-500 15-min chart (11:20 am):

SP-500 60-min chart (11:20 am):

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