Monday, April 5, 2010

4/5 12:00

Updating wave counts.  I posted a SPX chart (preopen) showing a ABC upward count that predicted a thrust to 1185.  The problem with all of the wave counts is that the C wave was composed of a 5-wave with wave 2 overlapping the top of wave 1.  I now believe that there is too much overlap for that to be a valid count.  Posting an alternate count that will invalidate on a decline below 1177 June futures (1180 cash).
This count allows for a rally to major resistance at DJI 11060.
According to this count the market just completed wave 3.  Therefore, I will cover the shorts on the expected wave 4 decline. 
If the SPX cash declines below 1179.80 I will put the shorts back on.

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