Monday, August 23, 2010

8/23 1:00

DJI and SPX formed triangle as 2nd wave.  So far no 5-waves up.  If it breaks up then a 5-wave will be the form.  Holding with no change in stop, DJI 25 points above the highs of the day.

2 comments:

  1. EW doesn't allow triangle as second wave. If there is truly a triangle here and IF this is truly a second wave, then the triangle must be in the B wave of the ABC that makes up the 2nd wave. (Triangles are always next to last wave of a sequence, so 4th wave or B wave of ABC.)

    But maybe that's what you meant by the triangle breaking to upside, no? Because the triangle would be the B wave, then the C wave must follow and that would be UP. :-)

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  2. On the other hand, is it possible that the move down early this morning was only 3 waves and that this long drawn-out sideways action since then is wave 4? I guess we will know soon enough. If the triangle breaks to the upside, it's the C wave of wave 2. If it breaks to the downside, then it was wave 4 and the downside break would be wave 5.

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