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, December 24, 2009

And Just to Show You How Annoying the Market is Behaving

Like I was discussing here Count Choculitis we finally broke out of the trading range and my preferred count was the Triangle B wave. It seemed to best describe the action on the SPX.

.... Yet I was still holding the Ending Diagonal as an alternate count. (I always have 6-10 alternate counts going at one time, ranging from somewhat likely to nutso. I only show my preferred count, because I have to decide which one to trade off of, which forces me to choose a count that is "more likely than the rest" even though I ***never*** put a 100% chance of likelihood on *any* of my counts)

And the current move up and bounce down, is respecting the Ending Diagonal Option pretty nicely.

So for your viewing pleasure, 2 possible counts. The triangle is still my preferred but by a small margin. There is a lot that is compelling about the diagonal option.

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