Trade Set-up for 28.2.2012

So far we have labelled the Impulsive upmove from 4531 as follows:

And I have been mentioning for quite sometime that whenever W3 is more than 300% of W1,my observation has been that W4 and W5 get subsumed within it. However, following IDEAL COUNTS, it was important that I count the downmove from 5629 as W4 till it confirms otherwise.
And on Monday dt 27.2.2012,we have come very close to confirming that the downmove may actually have to be labelled as not W4 but something else.
Although the price-wise confirmation of the down-move not being a W4 shall come below 5250,there are certain other "pointers" which have already said so:
1.Fourth waves are characterized by their sideways,griding ,boring nature whereas current down-move is too fast & furious to be called a fourth wave;
2.Correctives as zig-zag are often fast & furious but these zig-zags remain confined to a channel. However such a channel has also been broken in the current case:

3. As mentioned in yesterday's post,W4 normally terminates near the terminus of subwave four of W3 (in this case at 5323) but it has come much below that.

And the current labels are are looking stretched, illustrated in chart below:

C(=253) has already done 150% of A;
C3(=187) has already done201%  of C1(=93);
(iii)(=178) of C3(in play) has aleady done 363% of (i)(=49)

But theoretically we would be able to call the current downmove as Impulse(subwave of higher degree Corrective) only when we come below 5250 as then C=5521-5250=271 would become 1.618 times A=5629-5461=168 and qualify to be called as Extended 3rd wave of the Impulse started from 5629.

Thus ,a tick below 5250 and all rises to be shorted for target of 5080(50% of the upmove from 4531 to 5629).

Raghu