I like the structure of your chart.

That’s the count we have which is particularly confirmed with the 60 and 30 minute intraday structure (in terms of a 5-wave impulse down with the expectation of an abc back up).

Problem is, I’m not certain which “5″ we’re in. It’d be nice if we were in the 5 of your count (meaning this is the large-scale 5) but I still can see the case for us being in 5 of the larger-scale 3 wave down, then we’ll have a big 4 up.

I vacillate between the two counts but we’ll know soon enough I hope.

http://api.ning.com/files/eGzzv7CIH9SSbV3bwfT4eoRUi4YfkgXZtmOS5Tw1agMotQGjZgh6AFHvb80PbUqs2cSemG7NcrG2vcf40szCJEjoiYCFbBwW/daily.png

I used to use the Stochastics quite a bit but do not do so any longer. I see the Slow Stoch is crossing over into a buy signal now. I just don’t look at that anymore – I find that price analysis based on the principles of price behavior to be more rewarding to me than any indicator. Just personal experience.

But the classic way to interpret the stoch now would be that of a buy signal, indeed.

There are slight nuances between them. For example, the S&P broke above its daily 20 and 50 EMA which was a sign of strength; the XLF stayed beneath them both.

The XLF is further along visually in its swing down than the S&P – but that’s more of a gut thing.

The XLF also broke its horizontal support line a day or so prior to the S&P breaking it.

It’s not so much you get a large lead by any means, but rather in the subtle nuances of technical analysis and price structure.