Wednesday, October 21, 2009

Alternative count: today was THE top

SPX: I reworked and relabeled actually the whole second half of this bear market rally. I see now a triple zigzag! The Expanding Diagonal however, is still possible but as you know, I've never really liked it so I looked for another count. ; )

This reworked count is only valid if today was the top! If the SPX goes one tick above today's high I'm back to my Expanding Diagonal.

Primary count: first waves of Primary [C]/[3]
Alternative count: (b) of [v] of an Expanding Diagonal

Edit: Just to make things clear: the Expanding Ending Diagonal is still a valid option, even though it hasn't reached the minimum target yet (it did in the future though!).

It's said that "wave 5 is always longer than wave 3". And I don't know how they came up with this rule because they had like two examples for a EED whereof one was even invalid... So maybe I should just stick to my EED count. I'm gonna post both charts after today's close so that you can choose the one you like more. lol (Till then I might have already decided which one I like more : DD)