Tuesday, March 23, 2010

Tuesday 3/23/10 Market Update

A 1 minute chart is above. Prices broke out of a sideways correction that began yesterday. A shallow, sideways correction at this stage of a rally is an indication that an impulse higher is not unfolding. In addition, there is also a great deal of symmetry between the rally yesterday and the rally that began today. It is possible a 3rd wave higher is underway, but the market is not well positioned for a soaring rally. Some higher prices tomorrow should be expected before a wave down begins.

Because of these reasons, an upward correction within wave (iv) remains the best count. This fits in well with the larger picture.

The chart above suggests wave (iv) is underway. A completing b wave to new highs within (iv) of [iii] of A of (Z) of [2] works well in alternation within (ii). It appears that (iv) is an unfolding running triangle or an expanding flat.

A final chart is above. It appears that an impulse higher began 2/5. When this completes, there is a chance [2] will complete as well. A count such as this is also an option.

blog comments powered by Disqus