Wednesday, August 12, 2009

Thurday 7/30/09-Wednesday 8/12/09 5m Chart

The market made a rebound today but continues to show a lack of determination in either direction. Support levels, such as 992, continue to hold. The count shown above is a guess of the current action.

The decline following the 1018.00 peak looks like a zigzag wave and there is good reason to believe the market has completed wave A (e.g. channel line broken and [v] looks like 3 step impulse advance), so the count depicts a sideways correction underway. This correction may be a flat or a triangle. B should take at least one week to complete and this count should allow that to happen. However the correction has been very shallow making one wonder about the validity of such a pattern. Also an impulse up appears to have been completed today. This adds more doubt, so the count is really just a guess at this point. I'm hoping Kenny, Dan, or you have some better ideas.

Some support and resistance levels are shown in orange (the same weekly levels as before) and they remain applicable for the remainder of the week. Also keep an eye on the 992 support zone and the other lines shown.

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