Wednesday, August 26, 2009

Tuesday 9/25/09-Wednesday 9/26/09 1m Chart

The market continued trading sideways today with volume continuing to wane since last week Friday. Waves continue to be choppy, a corrective characteristic. The [iv] wave double suggested in yesterday's post appears to have played out or is extremely close to completing. This sets the stage for wave [v] of C of (Y) of primary wave [2]. Targets for the completion of wave [2] are discussed in yesterday's post.

Wave [iv] appears to have been a double correction with a (w) wave zigzag and a (y) wave triangle. The triangle structure is very clear; it being wave (y) seems most probable. When a triangle is seen in the 'y' wave position, it is ending the correction.

Also note how the previous extremes of waves iv of (iii) of [iii] and (iv) of [iii] have been held. This is typical and bullish in the short term.

(x) looks small but did retrace a good amount of (w).

C may be considerably smaller than A once completed.

The triangle is really upside down and is actually the 4th wave of something or is wave (x). [iv] is already satisfactorily wide however.

Some other complex correction is still underway. Perhaps a triangle with different labellings is still completing.

Wave C is extending; degree labellings are off, the market is completing wave [i], not wave [iv] or [v].

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