Tuesday, June 8, 2010

Tuesday 6/8/10 Market Update

The count has not changed since yesterday's update. Wave v of (i) of [iii] appears to be complete with wave (ii) of [iii] underway or complete.

A double or triple zigzag wave (ii) higher that will retrace less than 50% of (i) looks like the best count at the moment. The labeled wave x was quite strong, so a double or something complete may be underway. Please note that wave (ii) may actually be complete even though less than 38.2% of (i) has been retraced. There has been weakness in this market, and this may be continuing. A strong x wave within a double zigzag is a sign of weakness.

A closer view of the correction can be seen above. There are many ways to label the second rally following x.

Some moving average observations can be seen above. Note that (i) of [i] and (i) of [iii] are very similar. The above moving averages and even the RSI and MACD are in similar positions now compared to the wave (ii) of [i] peak. There is certainly more upside potential however given the current shallow retracement. Also keep in mind that each wave has its own distinct personality.

The larger view remains the same.

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