Sunday, February 7, 2010

Friday 2/5/10 Market Update

After final waves of selling Friday, wave (ii) of [iii] appears to be underway. Although the count for wave (i) is questionable, it can be counted as a downward impulse. There are various ways to view it as such. A few options are shown in the 1 minute chart above.

Because the larger picture shows primary wave [2] complete, it should be assumed that the labeled wave [i] and (i) of [iii] impulse waves have not formed a zigzag correction (or the first leg of a correction) within [2]. If 1105 is violated this week, a wave [ii] flat correction may be completing.

A clear upward impulse from Friday's lows looks complete or nearly complete. If prices breach 1045, wave (ii) of [iii] was probably a flat. But because 38.2% of wave (i) has not yet been retraced and second waves are not typically flats, this is not likely. If the primary count is correct, look for a pullback tomorrow morning then another 5 wave advance (wave c of (ii)) to complete wave (ii).

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