Friday, October 22, 2010

10/22 10:00

The rally from yesterday is complete as an abc.  Confirmed if SPX declines below 1177.60.

2 comments:

  1. Still not liking the dollar chart as the entire move up from last Friday's low looks corrective. Even though the move up from yesterday's low has the look of a 5, wave 4 overlaps wave 1. I have not studied currencies as much as I've studied other markets, so I don't have a feel for how much overlap between waves 1 and 4 actually occurs, or whether it ever occurs at all.

    But the bigger problem is that the move up from last Friday's low to Tuesday's high counts only as a 3 as far as I can tell. So the only bullish count for DX that I can come up with is a Leading Diagonal (LD) where Tuesday's high was the top of wave 1 of the LD. LD's are rare, so this has low probability IMO. However, DX did break critical resistance based on your MA's, so maybe the LD will play out.

    Once critical resistance is broken, how common is it for the market to turn around immediately and then break critical support (in other words, to reverse)? Where do you have critical support right now for DX?

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  2. pima
    Posted charts. I'm posting 2 more to answer your question.

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