Tuesday, April 2, 2013

Charts 04-02: W3 almost in

We're in a small E-D wedge that looks like it can touch 1576 tomorrow, a logical spot for profit-taking and an end to what I am labeling W3 of a final 5-wave impulse up to finish the Jaws of Death.

Wave 2 was 50 handles (1448 -> 1398).  50 handles down from here is the 1525 area, which gets us across the channel, gives us a clean 2-4 trendline, and lets us rally into EOM April and the May FOMC for a touch of the giant megaphone that started with the 2000 top.

Proposing a zig-zag for a W4 here, because it would look impulsive enough to bring in enough shorts to power the final leg up.

SPX 04-02 6M daily

Stay frosty!

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