Sunday, October 25, 2009

Friday 10/23/09 Market Update

A 30 minute chart since the beginning of August is shown above.

The primary count (introduced in the past) has been changed due to a wide, corrective looking pattern. Since early last week, choppy waves have been prevalent. These are corrective looking waves with a general sideways to down tendency. A large downward move resulting from a "winding up" wave structure will invalidate this count but it seems unlikely given Friday's action.

Shown above is a 1 minute chart covering the last 5 days of trading.

The market moved lower on Friday but not in an impulsive fashion. There were many overlapping waves with a pretty clear wedging pattern that appears to be nearing completion if not already completed. Once completed, this pattern calls for dramatic reversal of the market which in this case would be up. If this pattern really did complete, the truncation will add extra power to the upward move. Tomorrow should be interesting.

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