Tuesday, February 9, 2010

Tuesday 2/9/10 Market Update

A 1 minute chart is above. There was a rally today that began with a gap higher. Wave (ii) appears to be still underway if not complete at today's highs. The count should be more clear tomorrow when prices move either up or down. If another move up is in store, 1082 or so should limit the advance.

On a bullish note, there have been no clear impulse waves lower. It counts best as a correction; see the bottom alternate count in the chart above. Then again, last week wave (i) of [iii] began in a similar fashion; it was not until the gap down the following day that we became aware of the count. Also notice that today's channel was broken to the downside. In addition, as the chart below shows, (ii) is getting a bit wide with a significant upper channel line approaching quickly. Wave (ii) already seems quite complex and has retraced most of (i).

(ii) is generally a choppy pattern and looks corrective. Tomorrow should be the day that it ends if it has not done so already.

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