BSE Sensex Daily Head & Shoulders

While elliott wave counts are fuzzy and the market is up by 100+ pts today. I just thought i would mention something of interest on the daily chart, especially since i think that todays reactionary up move will quickly be met by selling.

Sometimes the simple text book patterns do work out. The RSI is highest at the left shoulder the head shows some divergence at the and finally further lows on the right shoulder forming. The neckline is very visible along with the green line that is the 200DMA, currently providing support. Should this break we will quickly be testing the 17400 levels. This week should provide answers for the next few months.

BSE Sensex Short Term Elliott Wave

I was a  bit early in calling a top at 20156 on the 21st of Jan. The top was actually put in on the 29th of Jan, at 20183. For reference to the Longer Term Elliott Count you can refer to my post dated Jan 22, 2013. The current drop starting on the 29th follows a picture perfect elliot wave pattern with each of the waves breaking down perfectly into smaller waves.

As per the count we have started a 3rd wave of which i &ii are complete. The wave (i) is also complete but completion of (ii) is debatable since we have a zig zag abc that might also form the "a" wave of a bigger flat which might finally conclude the (ii) at approx 19,000.
3 possibliities.
1. The whole count is wrong if we break 19200.
2. If 19,000 is breached, (iii) has yet to start.
3. If 18,760 is breached (iii) has started which should take us down to 18250 ish.

Updates to follow in the comments as moves are made.