TSE update

TSE sept 2 2010

Here is a nice way of looking at the TSE, that is if you happen to subscribe to the head and shoulder idea. If so , it is my understanding that we should once again travel to just under the 11000 level as a minimum. This could be accomplished in as little as 10 trading days judging by the previous tumble of the same, approximately, 1000 points. If the H&S has no appeal, than perhaps the elliptical curve drawn does. There are at least 8 points that determine the form of this curve, perhaps we well get a few more in which case stocks would have to start trading down very soon (if not, it would probable be a real strong break-out to the upside !).

From a shorter term perspective here is the chart from a few days ago again;

TSEsept 2 2010 1

Assuming we had an initial wave 1 down into the July low, we then had a counter-trend correction in the shape of an a-b-c (with the b as a triangle). Today (at about 12100) we are within a few points of where c=a AND we are at the 4th wave of previous degree level. Also we got through the first few days of the month of Sept and we are a day away from the labor day weekend and the US employment numbers. This should be it.