SPY Update (by Leaf_West)

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Before I start I would like to warn people that EWT is discussed in this post … I'm sure that it will bring out the haters but I would like to point out that the MOB/Elliott Wave driven target  of $135.00 – $135.25 was shown on Monday of this week and this morning's high hit right into the middle of the targeted optimal time zone to the minute (targeted time zone is the two vertical black lines in the MOB target).  So having said that bring on the ridicule …

 


SPY nicely hit the MOB this morning (right in the middle of the targeted time zone) … it was done with Wave 3 instead of Wave 5 like I thought it would.  I think eSignal's labeling of the waves is good here.  Wave 4 as labeled bottomed just above the 38.2% pull-back area and right at the previous minute Wave 4 of the bigger Wave 3 as it normally does.

So I am playing for a Wave 5 move higher to at least test the previous Wave 3 High (most likely marginally higher).  Waves are bound to be fucked up due to OpEx tomorrow.  Of all the option driven targets, I have been playing the pull-back in POT to scalp long thinking it will still revisit the $55 level tomorrow afternoon.  AAPL is at the $340 so there is no logical buy there.  GS is perplexing but tomorrow may be the time to get involved there.

SPY_May 19, 2011_15min

Cheers … Leaf_West