Friday, September 18, 2009

Triangle Possibly Forming - They Are "Terminal Moves"; September 18, 2009

On the 5 minute S&P chart, along with other indices, I see a triangle possibly forming (see above chart). If the market declines a little bit more it will complete wave e where it can then thrust sharply to new highs later in the day.

What's key is that according to EWP, trinagles are "terminal moves". In other words, they are the result of a tiring trend that will completely reverse once the thrust is over. If correct, the market will thrust sharply higher later today. Once the thrust is complete, a top should be in place. But a break of wave c at 1064 would hint that top may already be in.

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