Friday, July 10, 2009

Thursday 7/9/09-Friday 7/10/09 1m Intraday Chart

The 869.32 level was not broken today, a double zigzag was formed retracing about 78.6% of the advance since that level. Suddenly the market is not looking bearish, at least in the short term. The double zigzag may be correcting a variety of things, there are many alternate counts out there. However in the short term it does appear that there is more upside to come.

The advance since 869.32 can be taken as 3 or 5 waves, the 3 wave count posted yesterday does look the best but the 5 wave alternative is shown. If this is 5 waves, then it may be an impulse with Y having been completed. A single zigzag may be forming with its 'b' wave having bottomed today.

If the advance since 869.32 was actually 3 waves, a contracting triangle or flat may be tracing out since that low. Another possibility is a double zigzag forming with its 'x' wave having bottoming today.

More market information is needed to determine whether or not the WXY double zigzag has completed.

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