Wednesday, December 30, 2009

Wednesday 12/30/09 Market Update

A 1 minute chart is shown above. The market action the past few days has certainly not been exciting. The gap up on 12/21 looks like a 3rd wave with a drifting extended 5th wave following. The pullback following appears to have completed.

The above 5 minute chart illustrates a possibility in which wave C of (Z) of [2] may be completing shortly. This is the primary count. Wave [iii] is already longer than [i] and it does not seem likely that [iii] will be extending any further. A correction followed that may have been wave [iv]. It does look small, but looks like a completed correction. Given this, it may have been a correction within [iii] preceding its "3rd of a 3rd" wave, but in my estimation there is not enough strength in the market to support this type wave [iii] move. So unless prices explode higher, C is probably nearing an end. I am guessing this will occur just after 2010 by a day or so.

Note that ~1137 is the point in which C of (Z) of [2] will be 61.8% of the length of A of (Z) of [2]. This was illustrated in a previous daily bar chart. There are also some interesting relationships between intermediate degree waves using intra-day values; (Z) is 61.8% of the length of (W) at ~1140.5, and (Z) is 50% of (Y) at ~1134. Also if the length of (W) is extended by 161.8% from its starting point, 1135 is the resulting level. Other targets also exist.

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