Short Term Trading Member Forum

[techcharter]

INDU and SP500 E-wave

The wave off Wednesday's low looks very motive. I was expecting a zigzag or choppiness following the very motive looking wave from last week's. So far the bounce has recovered 3/5 of the drop. The wave count that best fits this situation is a Wave 4 flat that started at October's top and ended this Wednesday. In a flat, its top goes beyond the ending of Wave 3. The rally since then has been Wave 5. The end of Wave 5 today is higher than Wave 3. Since Wave 4 made the absolute high, this is called and unorthodox high.

So tomorrow there should be a pullback. Either a small consolidation of a larger uptrend, or the beginning or a crash.

SP500 chart:

http://charts.barchart.com/chart.asp?sym=$inx&data=Z60&date=072106&den=HIGH&divd=Y&a...