SPY Update (by Leaf_West)

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LA_06 As most readers of my blog have seen with my posts in the blog and in the live chat, I have been looking for a push into the $132-$133 area as the first leg of the "B" Pattern in an ABC Zigzag correction off of the Feb 2011 highs.

For those of you unfamiliar with eSignal, the rainbow colored bar is the "MOB" target drawn by their charting software.  MOB stands for Make-or-Break, and it is drawn off of pivot points using Elliott Wave Theory.

March 24th Forecast:

SPY_March24, 2011_Pre-Market01

Current Chart:

SPY_March30, 2011_TradingDay01

The first leg down from the Feb top ("A" of the ABC Zigzag) was in itself a zigzag and therefore I am expecting a flat pattern for the B leg pattern.  For those readers that are less familiar with this, here is what I am expecting (along with the forecast I drew on March 24th) …

SPY_March30, 2011_TradingDay02_ABC

March 24th Chart:

SPY_March24, 2011_TradingDay04

Cheers … Leaf_West      Visit my Blog