1/27/20098:52 PM Pacific
We breached the most common 1:1 ratio zigzag late this afternoon negating my first
choice last night. On this chart I am labeling the 1/26 decline x but it could also be X
depending on where we are in the pattern. If we turn right about here, where the lower
blue arrow points to a confluence zone, then it is probably x, an extension of the a-b-c up
from B. If we continue higher without a retracement, then the next target is the
confluence zone annotated by the higher blue arrow, and the 1/26 retracement is X, the
entire retracement of the A-B-C up from D.
It is kind of Elliott semantics, however, because I don’t think the net in the bigger picture
is going to change either way. The most probable outcome is that we work our way to
descending trend line of the contracting triangle and turn lower.
Fibonacci worksheet

1/27/20098:52 PM Pacific
If we turn in the vicinity of the first confluence zone, the probable pattern is shown
below. Perfect symmetry and probability favors this option, but with tomorrow being Fed
day, uncommon ratios are often common place. Price could push straight to the target. If
this happens, the target is 890-905. A small overshoot or even a small undershoot of the
descending trend line is common for wave E.
TMD/DW
The market detective provides personal market opinion based on sound technical analysis and
research. However, no warranty is given or implied as to its true reliability. The market detective
will make errors and mistakes. The market detective is not an investment adviser and is not
making recommendations to buy, sell, or place orders relating to the futures contracts, ETFs, or
stocks that he writes about. The responsibility for decisions made from information contained in
this service are solely that of the individual subscriber. The individual must fully research and
make his/her own decisions before acting on any information provided by the market detective.
The market detective assumes no responsibility for subscriber investment or trading results.