14 Jun 2013

Two scenarios that could pan out.  Yesterdays EW count is still intact for an abc up pattern for a 2nd wave or B wave blue (Bearish), but the upper resistance channel from the top of May 22nd is making it hard to make a move to the upside near 1660 area of SPX. 

Another pattern can be seen as an alternate that show a possible triangular formation that puts us at a B wave blue that brings us down to an eventual low near the Mid-April low for C blue.  Although both scenarios see us going lower, the latter will see us bounce right after we make the lower price range of 1540-1550 SPX breaking the highs made on May 22nd.  Of course we still have the bullish count that was brought up in yesterdays analysis that would bring us to a wave 3 up for whatever the new high count would be (Maybe green C pushed up in Price and Time).

Mid-Term: DOWN
Short-Term: UP

The Short-Term has been very volatile lately and it fits with a triangular pattern with sudden whipsaws.  Once we break out of this range (assuming we have a triangular pattern), we should see a few more days to weeks of downward pressure.

Scenario A:

Scenario B: