Friday, May 14, 2010

WTI / SP Update

I've made a slight change in the chart labeling to reflect the intraday spike yesterday.
That move up was a little 5 wave and fits into the 'c' labeling confirmed by the overlap obviously.
 The very shallow 2 wave is a sign of extreme weakness.
The ensuing 3 wave down should begin accelerating shortly.

In the accelerating 3 scenario, there should not be a move above the 73.57 level as .618 retrace of the latest little leg down.
Of course it could turn out to be that even these new lows are part of a down and under b wave still continuing as part of a 2, but that is a low likelihood given all the outside factors.
Like the SP.

 CLICK TO ENLARGE

That line represents an overlap of the beginning of -c- and support.
Similar scenario, accelerating 3 wave down about to ensue.

And again would like to see a bounce contained by the .618 retrace , short term, in the accelerating 3 scenario.

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