Sunday, September 27, 2009

Wednesday 9/23/09-Friday 9/25/09 1m Chart

The market continued lower Friday then rebound around 1:30 in an impulsive fashion. Prices have been within 1041-1053 for the past day and a half.

The next market move is not clear. The best I can see is shown in the chart above with some alternates at the bottom. The bounce near the end of trading on Friday looks like a questionable impulse with its "3rd of a 3rd" wave being heavily retraced by the following 4th wave. It can also be viewed as a double zigzag retracing just over 61.8% of the previous wave (marked as i in the first alternate shown) in which case a 3rd wave may be ahead. But in an case, it appears that (i) completed with at least part of a correction following. Tomorrow should be telling.

It is still possible that this is wave (c) of a flat [iv] of C of (Y) of [2] wave, but there was near crossing Friday (1039.47 which may have been the top of wave [i]). The Dow Transports have already crossed.

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