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Monday, September 27, 2010


On Friday and Saturday I was showing one of my crazy idea counts (see More and Major League Divergences) for a short 5th wave ending diagonal on Friday afternoon.

There is a reason why I called it a crazy idea alternate count. Because they are low probability. It was idea that didn't pan out.

And like I said on Friday and Saturday, my preferred count is for a rally to 1158 on the SPX until the end of this week

From Saturday's post: 5) At SPX = 1158 we have some very nice wave relationships to the July and August waves especially if the rally runs out to Oct 1 (Gann time relationship). This is my preferred count

What is interesting is that from the low at the end of Thursday afternoon, we have three waves up. The second wave of the 3 wave move had barely a pullback (only 23.6%) and so I do not think it was a wave 2 and we are in a 3 up now.

Instead, I think that very obvious three wave move is quite likely the first leg in a Minuette degree ending diagonal. If so, it should take roughly 1 week to run and roughly take us up to 1158. This is my preferred count and I am sticking with it :)

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