Sunday, March 7, 2010

Friday 3/5/10 Market Update

The labellings within what appears to be (c) of [y] of 2 have been changed slightly. These changes can be seen in the above chart.

Although the rally on Friday was strong in isolation, in my opinion the market is very overbought at this point.

The rally since 2/5 has been quite large from a time perspective. See the chart above. However there was more determination moving lower from 1/19 to 2/5.

Even if 5 waves up has unfolded since 2/5, a swift correction of the extended 5th wave should occur. A "3rd of a 3rd" wave of an even larger impulse since 2/5 is not likely to unfold.

A linear daily candlestick chart is above. If the market does make a new primary wave [2] high this week, the count will need to be altered. Unless (XX) actually ended 2/5 and was very wide, I see no way to describe a continued rally. There are no desirable ways to describe a new high even if one occurs weeks or months from now (if a downward zigzag or flat correction since the middle of January completes).

I have not experimented much with Wolfe Waves or their reliability in predicting price, but the above appear to qualify as examples. Let's see if the EPA lines are reached.

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