On the daily
chart I track developments starting with the following data: The current price
pulses (Intermediate Term), wave count, and applicable Price Pulse Trend Line
(in blue) from the weekly chart. I then add the following info: Price bar
movement (shown by purple lines on the price bars), Price bar trend changes
(green circles), Price bar turning points (blue diamond symbols above or below
a price bar), and the latest applicable Turning Point Trend Line (in green).
At this
point I am looking for either a closing price below the Turning Point Trend
Line or a new Price Bar Trend Change signal. When one of these occurs I will
take my next analysis step. Recall that we are looking for a Trending Pattern
(1-2-3-4-5) from the April 18th low. Since this five wave pattern
should end the entire rally from the 2009 low (see previous few posts), I am extremely
cautious at this point.
My next post will be after one of the two events described occurs on the cash SP500 index.
