Tuesday, May 18, 2010

Dow Jones ~ Elliott Wave Count 18 May 2010

Well... we got indeed that close near the lows. If that fractal plays out we should get a biiig rally tomorrow. With the ES already down again I don't think we get one though... ; )

For the second time this year a third of a third of a third may be just around the corner i. e. a big crash.

Below the EW count for this scenario:

The levels the bears need to watch to the upside are the wave [ii] and the wave 2 high. If these levels are breached we'll likely rally to new highs.

Not posting the bullish count today but it's still very possible. I think both counts are equally probable at the moment. Levels to the upside are 10720ish and 10920ish. To the downside there is this gap just below 10400 and another support at 10250.

The next days will definitely be very interesting.