$Compq- 2219 intermediate term wave 3 top in sight
Written by Gary Caumont
Monday, 16 November 2009 16:07
We are getting close to the 2220 (actually 2219) intermediate term wave 3 top I wrote about on 9/23/09. The possible H&S top was invalidated today since we went above its head of 2191 set on 10/21/09 to a new high of 2205. We may bounce off the top trendline of a possible "megaphone" which is an unstable formation. See the following chart.
The chart shows the intermediate term waves 1 up and 2 down with wave 1 start at 1727 on 7/8/09 to the center of wave 2 at 1973 = 246 + 1973 = 2219 wave 3 target. The two tendlines show the expanding unstable "megaphone" formation. If we break and hold above the top trendline, the next stop is the short term wave 5 target of 2286. If we fall to the lower trendline it may not hold since the formation is unstable. A 76.4% Fib wave 3 retrace from today's high of 2205 would put us down around 1990.
