At the present time there is still bearish divergence between price and the Relative Strength Indicator (RSI). There is also a cluster of resistance just above the market based on Gann and fibonacci relationships between waves one and three in this up trend. We are in wave five of the D-wave sequence now.
I have also drawn in the Level 2 TD Demand Line under the market. A qualified break of this line would be viewed as an early warning of price exhaustion. The more prominent upsloping line is the D-Wave 2/4 trendline.
Where does this daily work fit within the larger weekly picture now that the Combo count is gone? We still have an active Sell Setup in place (risk level 1345.5) and an aggressive Sequential 13 count is now in place. The aggressive count compares the opening price of bar 13 (vice the closing price) to the high two bars ago.
Bottom Line: Although the indicators are pointing towards a possible top over the next few days, the trend; at this moment, remains bullish.
4 comments:
The aggressive 13 sequential is interesting. That means we should expect a reaction over the next 12 price bars right? Which overlaps with current weekly 9 sell setup.
OpEx Friday could be wild.
OpEx Friday since Jan'10:
61% +/- 3 pt days
31% -6 pt days or more (avg -17.5)
8% +16 pt day (one occurrence*)
*Interesting to note that the single occurrence of a large gain on OpEx Friday occurred during the week in May'10 where the S&P had already lost a whopping 65 points leading into that OpEx Friday.
Nice work here.
I thought the aggressive sequential compared the high to high 2 earlier?
Dave.
Thanks Dave. No, I double checked the source material ... it is the open on bar 13 compared to the high two sessions earlier. Only difference in aggressive is to use the bar 13 open vice close.
Saxby
Thanks Saxby.
Different references different names, mine calls that the termination count.
Dave.
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