Sunday, December 20, 2009

Friday 12/18/09 Market Update

A 1 minute chart is above. The market appears to have bottomed Friday. A reversal was seen after what appears to have been the completion of waves iv and v of (c) of [i] and i and ii of (i) of [iii]. The fine wave counts are not clear but these waves do look like impulses. If the count is not correct, corrective upward waves are unfolding. One possibility is a correction within wave B of (Z) of [2]. But regardless of the pattern, a continuation to the rally seen Friday should be expected.

In a 15 minute chart above, an alternate B wave count is shown. I doubt this is actually unfolding, but it does not mean that B cannot continue to extend, completing some other pattern.

Tomorrow the market needs to show strength in the form of a 3rd wave if a motive C wave is truly underway. iii should be longer than its i wave counterpart. A small gap up tomorrow would be a good sign.

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