Friday, May 14, 2010

Friday 5/14/10 Intraday Market Update

The count suggested in yesterday's update is no longer desirable due to the sell-off this morning. A zigzag higher since 5/6 looks the best at this point. It is possible an ending diagonal wave C of (Z) of [2] is forming with wave [i] complete. A pattern like this reminds me of this ending diagonal seen over the 2009 winter holiday not long ago.

A zigzag in this position can also be a second wave correction within primary wave [3], or wave [b] of corrective triangle wave B. There are many options at the moment, but I have an upside bias given the corrective-looking structure of the 4/26-5/6 sell-off. This will change if prices continue to slide however.

The next update will be Sunday.

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