Mar 212014
 
 March 21, 2014  Posted by at 3:13 am

Most equity indices had an inside day following the NFP whipsaw so we are now looking for a breakout. Importantly, the 3 wave rally from 1840 to 1874 is guiding my thoughts here. Not clearly impulsive so the highest probability options are…

Option 1 Flat: IF trade above 1875 then measured target of 1885 for wave b before c down towards 1800. This market just LOVES expanded flats so watch for a failed new high around my 1887 pivot. The red count is immediately bearish while below 1874.14

SPX 60m

SPX 60m

A closer near term count of this potential structure…

SPX 10m

SPX 10m

Option 2 Ending Diagonal: Choppy overlapping wedge-shaped rally to complete (5)

SPX 60m

SPX 60m

As mentioned in prior updates, the BKX and DJT required new highs and the BKX has followed suit while DJT lags. The SOX however has once again reversed a large bearish reversal candle to break to the upside again. Tough to be immediately bearish given these conditions

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