Thursday, August 6, 2009

SP Wedge Line Test

The SP failed to settle back above the wedge support line. JUST. A glimmer of hope that WHATEVER is responsible for this seeming invincible ramp is running out of steam . ( guy was probably at the dentist's). There is a potential Head and Shoulders neckline around 991.50. It projects down to 977, coincidentally the next overlap underneath. SO what if...?
Under 977 and important support would be the beginning of the wedge at 965 , and then 920 the .618 retrace of the last leg up from 865. There is a possible wave count that is complete, AND the SP has retraced .382 ( 1013).
It is possible that a primary 3 or C down could ensue from this point. Alternatively even a corrective move down of lesser degree could retrace quite a bit, like 50% of the whole move up from 666. Of course the break might be false and the count might get expanded a little as the HFT program guy gets back from the dentist.

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