Monday, February 1, 2010

Monday 2/1/10 Market Update

Wave [i] appears to have bottomed while double zigzag wave [ii] appears to be underway. As the 1 minute chart above shows, there was a rally today followed by a triangle-looking correction. Because triangles come near the end of patterns, only a small amount of [i] has been retraced, and second waves are normally sharp corrections, expect multiple zigzags within wave [ii] retracing at least 38.2% of [i]. A large (c) wave ahead within a single zigzag is also a possibility. A less desirable alternative is an unfolding wave [ii] flat or double.

A larger view of the recent market action is shown above. All of the marked wave (v) has now been retraced. Wedging has also been lost. So unless (v) began at Friday's high, (v) has completed and is not extending.

One final chart is above.

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