Nifty EOD 3.11.2011

In the Beginning of the day, above chart was posted,as based upon the following counts:

SW1=5400-5207

SW2=5207-5300* in progress as a 3 wave form wherein

A=5207-5300=93(5 wave form)

B=5300-5253*=47(3 wave form)

C=5253+93=5346--expected as a 5 wave form.

However,what played out was the following:

So what went wrong?

Obviously our counts. It is becoming increasingly clear that less than one hour chart can prove misleading. Also if A of SW2 was a 5 wave,SW2 should have developed as a Zig-zag(5*3*5) and B of SW2 should not have gone below 80% of A i.e not below 5225.

Fresh counts for this downwave from 5400 should be seen as:

SW1=5400-5202

5400-5323=77

5323-5366=43

5366-5205=161

5205-5300=95

5300-5202=98

SW2=5202-5281* and it can go right upto beginning of SW1. And in choppy markets like these,you never know.

Raghu