Wednesday, February 10, 2010

Wednesday 2/10/10 Market Update

Prices continued lower but then rebounded shortly thereafter. Unless there is a big sell-off starting at the open tomorrow, expect wave (ii) of [iii] to continue into tomorrow. The best options to describe the rally appear to be a double or triple wave (ii) zigzag. A double zigzag with triangle x wave is highlighted in the 1 minute chart above with the triple zigzag as the first alternate.

If (ii) is still underway, the bottom line is this: another impulse or zigzag higher will unfold no matter the count. There is confluence of targets in the 1082 area that should stop the rally.

A larger view is above. (ii) is getting quite wide but remains choppy. The next move higher may be a short lived event but the channel may not contain the move higher. This would not disqualify the count, but prices should not linger beyond it for long.

A final chart is above.

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