Tuesday, June 30, 2009

Monday 6/29/09-Tuesday 6/30/09 1m Chart

Today the market topped as expected; 930.01 was the high of the X wave. It then impulsed down in the morning and traded sideways for the remainder of the day. Volume was higher than yesterday indicating selling pressure; his reinforces the count that has been discussed over the last several days.

The waves after the impulse were again hard to read but the waves are looking like zigzags. I spotted a very good looking triangle in the early afternoon which changed my count until the market rallied back. Triangles are supposed to be in a position prior to the final actionary wave in the pattern of larger degree. So a triangle following an impulse should mean that there is only one more impulse remaining. So the triangle looked very much like a 'b' wave at the time.

So there should be a (ii) correction not using a triangle as the w wave but this is very difficult to find, at least a nice looking correction. As a rule a triangle should not appear as the w wave shown but this is the nicest looking correction that I could find. I am not happy with this count but it looks far better than anything else, even if the true bottom of the impulse was 912.86, not 915.33. There is a clear looking zigzag at the end of the day, it will remain to be seen if this is ending the pattern. If you can find a nice looking today I would welcome some suggestions.

The triangle's position.

Any creative correction labeling without breaking any rules.

The iv wave may be lower than shown. There are alternate counts and alternate bottoms for this impulse.

An impulse was completed today off the 888.86 bottom and it is being corrected.

X was not completed but is really a flat or a triangle. Its 'b' wave could be a double zigzag.

The double zigzag forming is just one leg of another correction.

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