Thursday, May 20, 2010

Thursday 5/20/10 Market Update

The count has been updated as shown above. In my opinion, wave B is still underway in a very oversold market. It is possible an impulse lower since 5/13 is unfolding. This is listed as an alternate.

A substantial bottom is expected tomorrow if the B wave double count is correct. If 1065 is broken, the B wave triple suggested above will be the preferred. In that case, a flat + zigzag + triangle triple would make sense.

A more detailed view is above in a 1 minute chart. An Elliott channel as marked works well here. Notice the marked wave [3] is shorter than wave [1]. It is unusual for 3rd waves to be shorter than the 1st wave that precedes them. This phenomenon may be best viewed within a corrective wave. In any case, the limit for the marked wave [5] is well defined assuming the impulsive count is correct (3rd waves cannot be the shortest wave).

The levels in blue are the extension of [1] from the end of [4], the pink levels are the extension of [3] from the end of [4].

The larger view can be seen above. Again, this market is clearly oversold.

blog comments powered by Disqus