Monday, August 13, 2012

Market Timing Update (8/13/12)

[EOD] Stocks -
The bullish continuation pattern has survived so far, failure of which would imply an initial target around 1380, bullish extension otherwise.

[750 am] ES update-
ES is approaching its May high of 1405. The rally since the June low has 11 visual waves so far which implies a bearish triple zigzag or bullish 1/2/[i]/[ii] formation (Chart 1). Squiggle level wave structure suggests a near term triangle or wedge on the bullish side (Chart 2 black or red) and a flat correction on the bearish side (Chart 2, green).