I analyze macroeconomic issues from a fundamental perspective, and I analyze market behavior from a technical perspective. Original macroeconomic analysis can be found here and both macro analysis and commentary can be found on my Caps blog. If you like or appreciate my analysis, please add yourself to my Following List

Thursday, August 20, 2009

Preferred Count - Still in Minor B

I am still building on my preferred count from these posts:
Updated Count - Aug 19
Updated Count - Still Seems Corrective To Me - Aug 18
Market Update - Equities and US Dollar - Aug 17
Some More Wave A Thoughts - Aug 13

To reiterate my "quirky" counting philosophy for the major indices: one of my counting philosophies is to have the same count for SPX, INDU, NDX, COMPQ, and RUT. My logic goes like this: These indices are cross-sections of the US economy. They all contain Health Care, Financials, Consumer Services, Energy, Tech, etc. So (IMO) the *best* count is the one that works for all of them. Sometimes you are not able to make them count the same. But usually you can (e.g. If you have a valid 1-2-3-4 on the SPX, but 4 goes into 1 on the COMPQ, the "better" count will usually end up being a 1-2, 1-2 for both indices).

The count shown below works on all 5 indices.

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