You never know when the -x- factor will show up.

Target hit, but confirmation seems to hold out for now for the bigger wave pattern. But the trendline on top needs to hold. I sure do not want to break out at this point. If it would the pattern up would be nothing of more of todays same, corrective. I really am ready for some straight away trading.

The first chart shows the patterns of -1-2-1-2- that I was talking of in last post. Also the descending triangle for those interested in those things. The upper one is the channel and the other one is the horizontal blue line that is major support of several fractals.

For those interested in triangles. The longer they hold out to the end, the less reliable they are. Here is the scoop. 2/3 or less in the triangle before breakout has an 2/3 chance of performing to the rules of destination and direction of breakout. Anything longer then 2/3 have chances far less of success.

Since the market is at a critical point of two opinions right now. Let this analyst discuss it since I am flip flopping back an forth on the two opinions. I have this opinion or thought that 1337 needs to be touched. I gave it up but it still lurks here. Keeps reassuring this analyst that it is still a viable opinion. Making me look no better then the RNC and DNC conventions.

From the -E2- wave down to -1B- could be a large -A- wave. That being the case this market is now in a -B- wave that would take us to 1313. Breaking the upper trendline would confirm this pattern. Breaking todays low would confirm this pattern is not so.

So what does an analyst do. Well, to me the most critical area is 1269. If an -abc- pattern unfolds to there, then yestedays up was wave -A- and down -B- and up the market goes. So this analyst wants to look at the first hook and watch for an -abc- pattern. I want that last leg or -c- wave to blast out longer and past that number to confirm this is not so.

Let this analyst also mention that corrective waves make deeper retracements normally then impulsive waves corrective waves. So when I am seeing corrections in the 75% area, one can almost be certain a correction wave is on. The market is showing lots of them here. Another little indicator to alert one to what is happening.

End of day gave us another deep retracement. Not a good sign, but not a confirmation either. The trendline break out is confirmation.

For tomorrow 1269 is curcial and my pic, as I flip flop on this pattern.

Turning point to higher(target todays high or the horizontal line above),

but if it breaks, yesterdays low is target.

Best of trades while this market decides, hopefully tomorrow, once and for all which of those two patterns is on.

The larger chart not shown.

www.sillywaves.blogspot.com

charleydan