A clear 5 wave impulse pattern down is nearing completion on the hourly chart of the Qs. This should lead to a reversal by late this afternoon or tomorrow morning. Either this is the first leg or a larger pullback that began yesterday of the completion of a flat correction that began 9/17. The former would mean that the correction would extend into next week. The latter would mean that the uptrend would resume as early as tomorrow.
The most bearish interpretation is that the Qs are in a 3rd of a 3rd down on the hourly chart. This would necessarily lead to much lower prices, but the same two interpretions above would still apply.
Perhaps the outcome will depend alot on the RIMM report after hours today.
At the moment, I am remaining long in expectation that the uptrend will resume. I would only consider the possibility that the rally is over if there is a sustained move below 41.05, which does not appear to be in the cards yet.
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"A clear 5 wave impulse pattern down is nearing completion on the hourly chart of the Qs. This should lead to a reversal by late this afternoon or tomorrow morning. Either this is the first leg or a larger pullback that began yesterday of the completion of a flat correction that began 9/17. The former would mean that the correction would extend into next week. The latter would mean that the uptrend would resume as early as tomorrow."
I considered the 9/17 flat/ABC scenario yesterday til i remembered my false upside breakout scenario.
Considering the following it sounds like a 5-3-5 zigzag correction:
"Only once has the S&P surged to 3-month high on FOMC day then closed in negatively - 04/30/08, up 2% over next 2 days b/4 giving it back." 12:29 PM Sep 23rd Jason Goepfert
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