Short Term Trading Member Forum

[techcharter]

SPX intraday choppiness

From the Xmas eve high to today's high at the open I count 2 zigzags ( waves a and b). So the market is in a consolidation. The highest probable outcomes are:

1.) Double zigzag, with wave c half way done. Open lower sharply tomorrow, bottoming around 1825.

2.) Triangle, with waves c, d, and e to complete. This will end sometime early next week.

I've discarded the flat wave pattern (3-3-5) because the rally off today's lows looks more like a little wave b triangle than a zigzag or flat. Triangles signal one more wave of the same degree to complete the next larger degree. little wave c won't subdivide into 5 waves.

http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Index&symb=spx&time=18&startdate=1%2F4%2F1999&enddate=1%2F4%2F2013&freq=9&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=0&maval=9&uf=0&lf=1&lf2=0&lf3=0&type=2&style=320&size=4&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=9&x=38&y=11