13 Jun 2013

There are so much data from todays price movement and I will try to summarize it as much as possible.  Todays impulsive move is what we expected the c wave to be of a bearish EW count to form a blue ii wave or a blue B wave (if Blue B occurs then a 3 wave pattern down would make a Blue C).  A ii wave would allow for an impulsive move down for a iii wave. On a bullish EW count, a continuation move up past 1660 would suggest that higher highs are in store.  I would not however say that if we made higher highs that it would be the last pattern/formation.  Although it would lead to a weekly divergence between price and Stoch. We should just revisit that thought when and if we get there.  The Daily chart has shown a bullish engulfing candle and this should be good news for the bulls.

The dotted trend lines drawn are 1x2 trend lines which are equally important as the 1x1 trend lines that GANN likes to use.  These lines acts as possible support and resistance and it has over the course of the move up from late April.  Todays end of day price close is not by chance.  Why?  There are a lot of resistance here for the day.

- 1x2 Gann Down trend resistance
- 200 ma resistance
- 61.8% of red wave a resistance
- Not shown and a few points shy is the 20 ma on the daily chart which sits on 1643.34 day close.
- This area is also within the 38.2% FIB. of the move from Mid-April low to May 22 highs.

So what to expect in the next few days:
-Look for a resistance on 1660 for a bearish move.
-Any move above the 1660 level would be considered bullish
-The impulsive move in both directions would also be important as an indicator.
-The low made on June 6th must be broken to favour the Bears.

With all that said,  we should still follow our indicators which are still pointing to the downside.

Mid-Term: DOWN
Short-Term: DOWN

Note: RED wave A and RED wave B should be in colour blue.