Sunday, July 12, 2009
I've been watching the Euro tonight, and this alternate count for the SPX may be the way it goes tomorrow if the Euro keeps falling. I doubt the Euro will follow the purple channel up, I believe it is committed to the yellow downward channel.
It's currently about 70 pips below where it was at Fridays close. My best guess is the Euro will finish an upward wave C to about 1.3985 which is where it was when the NYSE closed. So by morning this could provide the push to properly finish SPX minute wave ii correction and then a drop along the yellow channel would be prefect timing for a wave iii impulse.
I'm slighty concerned but we will have to see what it's doing seven hours from now when the NYSE opens.
Occasionally the microwaves bend the EW rules. So that wave 4 overlap on Friday may have to be permitted afterall. This is basially the same scenario I presented on Thursday, but I still think the wave 4 overlap negated the posibility of an impulse wave. So I'm not saying this Alt count is correct, I just wanted to have an Alt Count ready just in case.
Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.
Posted by Robert Campbell at 23:15