Perfect Wave - 2012-1/2

[samirs]

samirs - I would bet on the purple line scenario as my preferred count. Today's market closed as a gravestone candlestick pin, which implies a possible ending and reversal of the wave started this Monday. Before the high of this pin is breached, I take the purple as the preferred count. If the high is broken, the grey line is underway. Thanks.

thanks....is the high broken with the gap up tonight...and hence second scenario more plausible...

 

[snowrider]

thanks....is the high broken with the gap up tonight...and hence second scenario more plausible...

Yes, I would quess so. My grey line wave count now becomes the preferred count because of the overnight surge.

 

[snowrider]

Wave Count

 

[snowrider]

 

[snowrider]

Wave Count - SP Intraday

 

[Dick Lexic]

hi snowrider, thanks for the intraday chart...on the last leg down your wave 3 looks shorter than wave 1 is that correct?

 

[snowrider]

hi snowrider, thanks for the intraday chart...on the last leg down your wave 3 looks shorter than wave 1 is that correct?

That is correct, and wave 5 is shorter than the wave 3. As long as wave 3 is not the shortest one, the count does not violate the EW rule.