31 Jul 2013

What a Whipsaw day.  Intra-day proved to be hard to analyze today.  It was best to stay out, but on the last update we mentioned that bias was to the downside.  The monthly closed with a full body candle.  Not something I wanted to see if this was the top but it can happen I suppose.  As for the weekly we still have until Friday to see what type of candle it would print out.

The Daily chart is by far the best look at a reversal candle.  Not only did we see a reversal candle, but it turned into a red one by days end.  The 60min chart shows an bearish engulfing candle, and should suggest more down side ...  Again we find ourselves between the 20ma and the 75ma of the 60min chart.  We just can seem to push away from these MA...

Note that INDU made new highs which doesn't really answer much because we made a diagonal pattern up on the 5min chart suggesting that if we had the FINAL HIGH then the SPX made a FAILED 5th Wave pattern non-confirming with INDU.  A simpler explanation would be that the B wave is making an expanded flat for INDU and not for the SPX.  Ultimately they both say the same thing and that the downside is still much in progress.

Main-Trend: UP
Short-Term: DOWN

The chart below depicted in green count upwards of a 1-2-3-4-5 which can be considered a failed 5th since it did not make a new high, but that being said.  The top count of a B wave green is still much alive.