Wednesday, July 21, 2010

Wave B Triangle Count

AussieKen asked me to post his EW count, so there you go ; )

He thinks that we are in a triangle wave B of an ABC decline from the April high. This ABC should complete a b wave of an even bigger contracting triangle:

666-1220 = a
1220-? = b

I think the main reason he prefers this count is because it works with every index. If you have ever tried to count the DAX in a bearish way (1-2-1-2 like the SPX) you most certainly failed (well at least I did lol : )). You won't have any problems to count it in the same way as above though ; )

I'll post an updated EW count for the SPX tomorrow morning (i.e. in about 8 hours). We didn't quite get to 1060 but the fractal still looks good. According to the fractal we should decline below 1057 tomorrow.