Thursday, February 4, 2010

Thursday 2/4/10 Market Update

Today was a big down day on high volume. Wave [ii] actually completed yesterday and was only a single zigzag as the above chart shows. It did not retrace as much of wave [i] as is typical for second waves which is a sign of market weakness.

An impulse down, wave (i) of [iii], appears to have completed today as the above chart shows. If (i) is not complete, there should be limited downside tomorrow morning.

The unemployment report is at 8:30am EST tomorrow. If it results in a gap, my guess is that it would be an upward one. When wave (ii) begins, look for prices to retrace at least 38.2% of (i) with a good chance of moving higher.

A final chart is above.

The next post will be Sunday. Have a nice weekend!

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