Wednesday, April 14, 2010

Market Timing Update (4/14/10 Close)

All three near term counts remain in play (Chart 1). Market sentiment has been in favor the most bullish of the three (the blue labeled count in Chart 1) or even some ultra-bullish case.

[Blue] An contracting triangle followed by a contracting ED.
Today's high is either wave (iii) of the contracting ED or the end of the ED itself.

Chart 2 shows the price action in the SP mini over the past two days can be counted as a completed (or nearly completed) zigzag.

[Red] No-triangle wave [iv] followed by an expanding ending diagonal.
The top could be in at today's high as indicated by the red trend lines as well as the squiggle count in Chart 2.

[Green] An expanded flat wave B of (Z).
SPX should be nearing the end of [b]-up of B-down. Wave [c]-down should start soon.

RUT-The more bullish near term count (blue) seems to be echoed by the RUT, which keeps on subdividing higher. Chart 3 offers a near term count of the RUT.

VIX- The VIX index did not suffer a new low today despite new highs in stocks.

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