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Monday, August 30, 2010


Okay, my big beef with the counts thus far is that I have been unable to reconcile the SPX, Nasdaq and the Russell. This led me to this option: Spice Weasel. But I don't love the count. And per my last post: Spongebob, I am not favoring the 1-2, 1-2 count down. We had a selloff today that could be developing impulsively, but it happened on NO VOLUME!. .... No sir, I don't like it.

What makes sense to me, based on the divergences we are seeing on the 15, 30 and now 60 minute charts, is that we will see a bottom soon. The McClellan is showing divergence as well: Span.

But the damned Russell keeps throwing in a monkey wrench!

... Unless its Minor 2 top is out of phase with the other indices. Blankfiend put together and excellent Russell examination (Russell 2000) and it got me to thinking about this wave.

I now have a count that:

1) Jives with the divergences noted above
2) Allows for a pre and post Labor Day rally (I think this is *extremely* likely)
3) That I like / find believable

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