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

Friday, March 11, 2011

Two Options

If you have followed my work for any length of time, you know that I hate showing multiple EW options. I always have alternate counts, but I show my preferred count. I don't like the ambiguity in showing multiple counts. On rare occasions I do, if I think there is something sneaky going on.

.... and I think there might be.

I still maintain that the count is corrective. The 1-2, 1-2 count down still remains absurd (IMO). But instead of being a W-X-Y like I showed yesterday, I think there could still be a more imminently bearish A-B-C in the works. When you consider that Thursday we finally established a lower low, but that leg down failed to equal the distance of the W leg, and based on the 'surprise' of the gap down, I think the market might want to be sneaky to the bearish side.

I offer my red count as an alternate.

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