Business Magazine

Mid-Day Update

Posted on the 12 December 2011 by Phil's Stock World @philstockworld
Over the weekend we said: Friday’s action is encouraging BUT we are not out of the woods just yet.  The only reason we say that is because of the little pink channel lines as shown on the index charts below.  One could say we are still in the little PINK Pullback Off Highs (POH) b wave channel that’s building itself out.  Mid-Day Update  Mid-Day Update  We also said: The micro charts say its a good possibility that we need to pullback to get a running start IF we are going to go higher into year end as shown below in the NASDAQ comp. chart. The SPX chart looks similar too.  And here we are doing exactly that.  Mid-Day Update  Mid-Day Update Could it be? Could we stall out at the thick blue mini support lines (NASDAQ comp)?  Sure anything is possible. IF so? Then this little red C wave would have stalled and truncated.  In the S&P 500 chart notations from over the weekend we said  we’d talk about the triangles on Monday. First lets look at the little triangle in pink below. As you can see it broke to the downside. However the clues to that were there in advance because one of the ways one measures what way its POTENTIALLY going to break is to look at the widest part of the triangle (where it starts).  For me, then what I do is count to four as in four zig zags.  So lets look at the little pink triangle in a zoomed in view and do that.  Mid-Day Update  See where the triangle starts (That is key- Where it starts.)? At a high and works its way lower for the red one.  Now that we’ve done that lets take a look at the current BIG triangle (remember in charting bigger is better ala bigger the base bigger the break- same deal) Mid-Day Update See where it starts? It starts at the lows of October and works higher for the red one.   See the 1234 counts?  Keep in mind I’m not saying its going to the red four I just lay it out as a potentiality so as

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