Monday, August 17, 2009

Friday 8/7/09-Monday 8/17/09 2m Chart

The market closed much lower today with a market gap down. Volume remains light however.

The primary count shown is one idea of recent market action, but in my estimation this is a counter-trend corrective B wave that will end shortly. The [a] of B count is putcallratio1's 8/11/09 count.

Wave [c] is longer and sharper than [a] however; this is not a typical phenomenon for zigzags. In any case, because of the breadth and size of the wave down today, a 5th wave should unfold soon to complete this impulse since 8/13/09. This may occur as soon as tomorrow with the market reaching the 960s or at least the lower 970s.

Structure on a small scale is not the clearest.

Wave [c] is longer and sharper than [a].

Primary wave [3] down is starting. The fact that the wave [c] shown is already longer than [a] supports this. If this is correct, relabel [a] as a first wave and [c] as a 3rd wave.

The wave count of [b] is debatable.

One of the other alternatives above.

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