Monday, May 17, 2010

Monday 5/17/10 Market Update

The count presented in Friday's market update has not changed with the exception of the relabeling of the last few waves of impulse (a) above. The larger idea expressed in the last update still works well, so the above labellings assume ending diagonal wave C of (Z) of [2] is underway. An upward zigzag 5/6-5/13 may also be a second wave correction within primary wave [3] or wave [b] (or part of wave [b]) of triangle wave B. A zigzag in this position counts better than an impulse in my opinion.

The alternate presented above is a great count and not unlikely, but notice the choppy waves following today's low. The short term count was arranged based on the appearance of this rally. Technicals seems to be pointing to a bottom today, but the upward rally waves bring doubt to this picture. These waves look corrective and may be wave a of a flat or triangle corrective wave following an impulse down since 5/13. An upward zigzag family correction underway or compete since today's low is also possible. Note that a shallow/sideways correction such as a flat or triangle works better as a 'b' wave than a second wave; these two corrections work well with the larger count that calls for a more bullish scenario, even if a downward correction did not complete today. But again, both an impulse lower and zigzag lower since 5/13 are good options; the next move will help us determine which possibility is the correct one.

The above expanded view remains unchanged.

No changes have been made to the above count or the alternate presented.

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