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May 11th, 2012: Update 1 – Morning

Posted by pugsma on May 11, 2012

10:30 am EST:   E-wave counts aside the SP-500 has reached a critical juncture.  The daily chart and commentary on it below indicate why the majority of market technicians around the global have gone bearish for the intermediate term (next several months) on the US Equity Markets.

It’s not to late to be saved, but a strong rally back above the 50-day SMA (1385) has to transpire in the next few days.  And rally and subsequent faiure into the 1373-1385 area is a warning that a strong minor degee wave 3 headed much lower is above to unfold, per the alternate (red) count.   There is a larger Head and Shoulders set-up with a double head at 1422 and 1415, neckline at 1340 that targers 1340 – (1422-1342) => 1261 for a P2-C3 low in the next month or two.  The 200-day SMA is also at 1277.   A rally up to 1373-1373 now will complete the right shoulder of the HS pattern.

SP-500 Daily Chart and Commentary (5-11-12):

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