The S&P has completed a 50% retrace of the previous leg down from the February highs.  This is the same retracement that defined Elliott waves 1-2, and has also completed a channel measurement before yesterday’s rally fizzled.  Are the markets now poised for the final chapter – fifth of 5 of (5)?

12:45pm – A push to retrace into the Brach zone (62-78% Fibonacci levels).  Is this a possible B wave high in an a-b-c sequence?  The overlapping structure on the 5 minute chart is giving a head’s up signal that price action could stall at these levels.

9:00pm update – Markets have continued to lift thoughout the day, calling into question the Elliott wave count.  It may well be that the ‘dancing with the devil‘ 666 level sets a low-water mark and would be labelled wave 5 lows.  This would also confirm the count and make-or-break levels as provided by the Advanced GET folks in the March 10 blog entry.

10:05 am – The first short sale is triggered as the SPX approaches the BZ (Brach Zone) running from 867-871.

10:30 am update – Parallel channel projection suggest a bounce at these levels. A ‘b’ wave low? Thanks to tipper in b-line channel.

11:00 update – a completed gartley pattern rises to the 78% retrace level at 871. Another a-b-c measured move is in place. This will require a tight 2 point stop, since the gartley setups have been having difficulty in the last few trading days

1:00 pm update – an amazing resilient market in the face of another round of bad news. A wolfewave is running in the stampede higher. Notice that all scalp trades are best handled with 30 minute entry/exit time horizons.

4:00 pm update – the markets manage to close the AM gap down. Most bulls consider this wildly positive action in the face of ugly news. The fact that the automakers are shot down in a senate vote is certainly far below the radar on this rather rambunctious day. Except for the noon hour, intraday jerk and scream motions are limited to 30 minute scalp plays.