Thursday, April 22, 2010

Thursday 4/22/10 Supplementary Market Update

This update is a supplement to today's previous update.

After some further thought, a wave [iv] of A running triangle may be unfolding. It is possible that this pattern completed today. An overview of this idea can be seen in the 30 minute chart above. More detail is below in a 5 minute chart.

This pattern has quite a bit going for it. Its wave (b) of [iv] works well as a double zigzag, much better than an impulse wave in that position. A larger wave [iv] such as this one has far better proportionality with wave [ii] than the previous wave [iv] suggested earlier today here. In addition if wave B is presently unfolding, it looks quite shallow at this stage. This of course would not be a problem if the above count is correct.

Wave [iv] looks incomplete due to the two impulse looking waves apparent since 4/19 and the small overlap with wave (a) of [iv] (a requirement of triangles). So prices may collapse into the mid to high 1180s in a zigzag wave (e) of [iv].

Whether or not this pattern, wave B, or one of the alternatives discussed earlier today is unfolding remains to be seen. However in my estimation the two best counts are an unfolding wave [iv] of A running triangle or wave B.

The next update will be Sunday.

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