20 Sept 2012

There is an issue with the movement this past week and although we have been looking for a higher move upwards for a 5th wave up.  The momentum doesnt seem to suggest that, therefore I would propose a scenario where we have topped and we are in a start of a move down.  Tomorrows action will tell if we move impulsively down for a wave 3 of 3 or if we are still on a wave C of C for 4th wave action.

Lets look at these options:

This first option shows a wave structure of a 1-2 1-2 count with a 3rd of 3 down. This will depend on how impulsive the move tomorrow is if its to the downside.

15min chart of why this could be a possibility of moving to the downside.  As you can see we are at overbought situation while the stoch. in the chart above is around the midpoint of the graph.

Option 2:
Would see us in a process that is still trying to complete.  This would make an ABC with C being a zigzag.

Option 3:
BULLISH count.  This would imply that we are moving up in the morning open then down for a corrective 2nd wave of 5th wave up.