1/6/200910:30 PM Pacific

The S&P cash interpretation also includes an alternate zigzag / Flat combination that could produce a different outcome than a completed double zigzag. In this case, price has already completed half of the next zigzag (assumed). Here the retracement would be measured against only the most recent wave up from c, and only one more wave up would follow the retracement before completing a triple combination correction (Zigzag/Flat/Zigzag). A triple combination is the limit for a corrective combination pattern.

In this case a .500 Fibonacci retracement only goes to 900. You may recall that this is also the .382 retracement level of the move up from X in the e-mini futures from earlier today. I show it again below for easy reference and so that you may compare and contrast the two options. This alternate thesis also projects to the price zone projected in the intermediate-term weekly forecast.

1/6/200910:30 PM Pacific

I say that this is an alternate thesis, but it may only be an alternate context with which to view the same price action. It is possible that both scenarios will play out with a good part of the e-minis price action occurring after hours.

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