Fib Magic

If you are a Zero subscriber you know that since yesterday late morning the Lite has completely flatlined. It’s a bit more squiggly today but I don’t see anything decisive as of now. It’s very interesting we should park right here, so close to making new highs on the SPX. Let’s take a look at the wave count, which presents an intriguing picture:

When I started to add a few fib retracements what really jumped out at me were the two intersection of 78.6% from last week’s low and 178.6% from the low of Minute {ii} (both mentioned on the chart). Seems that for some reason (I don’t know) we have run into a little bit of resistance here – or at least non participation if you believe what the Zero Lite is showing. Quite frankly – all I am able to offer are those two correlating fib lines – I would not have expected the tape to hold right here the way it’s doing.

But, it does leave the door open for Soylent Green – although I would only give it about 30% as of right now. Especially since the ES futures seem to be tracing out a bullish triangle right now. If so, we will be busting higher towards the close to make new highs and Soylent Green is dead. For now however I reserve my judgment – the market is acting pretty neutral right now.

UPDATE 2:18pm EDT: The triangle on the ES seems to be dead as we are approaching the low of what would be the a wave. So it was probably just subdividing and reeling in some longs. For Soylent Green to gain in credibility we would need a fill of yesterday’s gap open.

UPDATE 4:00pm EDT: This is our map for tomorrow:

If we breach today’s high of 1210.99 tomorrow then it confirms the pattern I drew on the chart above.

Cheers,

Mole