Mid day update

2/3/11

12:43EST

ESH11:

Where are we right now??

Well,

We failed to close the compression gap at 1294.50 (bullish)

We have 3 coils pointing up (light blue)

But we have a long tail on the middle coil

Long Tails are not 100% accurate (most often they give us a head fake first)

They’re about 70% accurate

In addition these are huge coils

Meaning until the next move develops it will be quite some time and the move will be extremely powerful

We have a key OAV (1300.50) green line

That also happens to be a compression gap

Making it quite a bit more powerful

We have not closed this OAV on 8 attempts within 15 hours

It’s real simple we close the compression gap and the move up begins

We’re developing a new C/T;

but I don’t like it’s internal structure

It reflects a complete lack of direction

It’s 1311.00 against 1281.75

1296.50 is the equalizer

We’re still in the bull wedge channel (brown compression lines)

Take into consideration

 we reached two down price targets on patterns (C/T) pointing up

Both were middle of the road patterns; this often occurs in a now term trend reversal

We need three for a confirmation but at the same we had a previous  RCT pointing up; off the recent new high, which as I mentioned they generally reach the down price target (new highs)