Monday, March 8, 2010

Monday 3/8/10 Market Update

It appears that today was mainly a period of consolidation as can be seen in the 1 minute chart above. The 3rd wave of an impulse that began 3/5 likely completed just after today's open. A narrow 4th wave correction should now be unfolding. If the larger count is correct, these waves are [3] and [4] of v of (c) of [y] of 2. So the count has not changed since yesterday's post. This means 2 should be completing tomorrow, Wednesday at the latest.

Since an impulse that began since 3/5 (and probably since 2/25) is nearing completion, a correction or more is imminent. The form and size of this drop will help us determine the larger count. As mentioned yesterday, it is possible primary wave [2] is still underway although identifying an S&P 500 count to support this is difficult at best.

A 15 minute chart is above. The rally since 2/5 is closing in on the January high of 1150.45, but will there be a new primary wave [2] high? In my estimation there will not be. The structure shown above can be counted a few different ways however; the sell-off may be a zigzag while the rally may be an impulse.

A final linear daily candlestick chart is above.

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