... there is now only one good way to do it. Regular readers of this humble blog will note that we have been tracking this potential contracting triangle for a good bit of time now. But the moment of truth is now looming!
It now appears that Wave “D” ended at the September 10 low and we are now in “E”. If this analysis is valid the cash s&p500 is limited to the upside by the downsloping “A-C” trendline which sits at about 1493 today. Adding support to this resistance line is the fact that the long moving average on the daily chart now coincides with the September 4 high just above 1496.
Wave “E” should end, and the “thrust” downward out of the triangle apparent, before September 26; the day the triangle’s converging trendlines meet. Any decisive break below the upsloping “B-D” trendline would be an indication that the triangle is over. That line sits at 1455 today.
Regardless of what happens today I'll take a fresh look at the weekly chart in a posting over the weekend. Cheers!
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