Tuesday, April 12, 2011

(Adjusted) Pattern Complete

The chart above is a follow up of the one posted last night. All three lines are parallel. The yellow line represents my original projection, with the starting point of the line circled in yellow. The adjustment is shown in white with the circle indicating the placement of the parallel trendline. Prices ceased their "c-wave" decline once hitting the lower trendline. This fact suggests that the correction that began at 1338 is over. Also notice that prices bottomed at a "higher low," marked in the chart. This is in line with my originally projection on April 7th for the pull back low.

We will have to look for clues whether this expected rally will bring the S&P 500 to new bull market highs, or whether it will fall short of 1340 and be followed by another move down.

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