Given the close near the low of the day after the strong morning gap, I suspect that today was a least a short term top. If it is we should see a fairly quick acceleration to the downside. Coming under 48.98 the low of the April high week should greatly increase the selling pressure.
Monday, October 25, 2010
Wave Count Satisfied
Today the Qs came within 0.16 of the lower cited target for the ascending triangle pattern. We can also see a clear 5 wave impulse down from the morning high followed by an upward correction. That is no guarantee that a top is in, but the pattern can be counted as complete at this point. We will need to see a move below 51.55 to rule out an extension of the move from the wave e low of the triangle, and a move below 50.52 to feel confident that the pattern isn't morphing into another ending diagonal.
Posted by R. Craig Pritchard at 8:26 PM