Today was a strong day for stocks. This is not a surprise considering the very short term oversold condition noted yesterday. The height of the rally will be important in determining the next market move.
Shown above is a 5 minute bar chart of market prices covering the last 10 days. The larger picture is still far from certain, but these look like disorganized, corrective waves. The corrective option was highlighted yesterday. If this is incorrect, primary wave [2] topped and an impulse completed yesterday. A zigzag second wave up would then be underway.
Above is a 10 minute bar chart of the Dow covering the same period. This is a choppy pattern that again looks like a correction. I do not see an impulsive wave moving down. With the highest price level being used as the top, the price rebound has already reached nearly 61.8%. The lower wave established 10/22 has already been overlapped. So the Dow Jones Industrial average also appears to have completed a correction.
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