On Thursday night, I presented the possibility of a five-wave formation up from May 10. I calculated this formation using a line chart of closing prices. As I discussed Thursday, in order for this to remain valid the S&P 500 cannot close above 1525.70. The index closed at 1525.10 on Monday. This leaves my current count valid, even though I could attack it on more than one point.
The alternate count would be that the current wave is assuming some form of complex formation. This would not be a typical wave formation because Wave 3 was complex. That is, it took more than five waves to complete the formation. Typically, only one wave within a five-wave formation does this. This would suggest that the formation up from May 10 should be comprised of only five waves. It is for that reason that I will stick with my current wave count.
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