Monday, September 14, 2009

Monday 8/17/09-Monday 9/14/09 15m Chart

The market continued higher today after a 3-wave correction completed this morning. This was definitely a possibility as mentioned in the previous post, but note that this winding down process that began 9/8/09 is coming to an end. Expect the leg beginning 9/3/09 to complete very soon and probably in the mid 1050 range. What happens after that point is still uncertain but many possibilities do exist. Some are shown on the chart above.

The rally since 9/3/09 has momentum problems. Zooming out, there are clear momentum problems on larger scales as well. This market is not in a good position for another large advance. At the same time I do expect prices to move higher after a pullback, but the magnitude of the advance should be questioned.

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