Wednesday, March 3, 2010

Wednesday 3/3/10 Market Update

After yesterday's correction and today's burst higher, the rally since 2/25 actually counts well as an impulse as is depicted in the above chart. The count has been changed not only to allow this, but the the double zigzag since 2/5 has also been relabeled as the below chart shows.

The first thing I thought of this morning on a blank chart was a count like this; there is good proportionality between the waves. It just happens to be that an impulse since 2/25 works well with the count.

In my opinion the rally since 2/5 does not look impulsive. Even if it is or if another corrective pattern is unfolding, a pullback is imminent in this overbought market. If the decline does not continue, it is possible the final 5th within the impulse since 2/25 is still ahead.

One final chart is above.

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