Monday, May 24, 2010

Monday 5/24/10 Market Update

The truncated wave C of (Z) of [2] count suggested as an alternate in Friday's update is now the primary. This count can be viewed in the 15 minute chart above.

This count solves all concerns expressed yesterday but at a price; the count suggests a huge truncation with wave B, a corrective wave, making the last high. This seems odd. However the breadth of the labeled C wave advance does make sense as the core of an impulse wave. The possible count expressed yesterday for wave C in this position can be seen here.

On a smaller scale, a triangle as indicated above may have completed. Look for a symmetric wave (v) to complete tomorrow. If the wave (iv) labellings are correct, this wave may be similar to the 5/20-5/21 wave v of (iii) impulse given that the futures are currently down about 10 points (this indicates that there should be a gap lower tomorrow).

The larger view has been changed minimally to reflect the new count.

blog comments powered by Disqus