13 Aug 2014

There is a possibility that the move up is not done based on my EW pivot point.  If taking a Fib. retracement on the Aug 6th low rather than on the Aug 7th low I would get a 50% retracement in around the 1950 - 51 range.  It is not to say that we cannot turn here and move lower, but it is something we can keep any eye on to see if indeed the 1st sub-wave did end on the 6th of July low.  That being said,  2 alternatives that could form would be a 3rd wave scenario which is much more crucial in the ST since volatility makes it seem as thought the ST lags behind, but in a time perspective it is quite quick at pointing out a turn sending us down to the 1725 area.  Therefore tomorrows move if it is an impulsive one should turn ST to the downside fairly early or quickly as well.  The 2nd scenario is that the next wave lower sub-divides to another i-ii subwave, bringing us to the 1800 level.

MT: DOWN
ST: UP
PA: DOWN