Saturday, June 12, 2010

Friday 6/11/10 Market Update

The count has been changed to a completing upward impulse wave [c] within corrective flat wave 2 (degrees have also been changed).

This count works quite nicely given the structure and retracement concerns of previous waves. A flat [b] of 2 wave works well given the impulse down from 6/3-6/8 testing the 5/25 lows. A collection of zigzags 5/25-6/3 as shown also work well here. Finally ~1107 is the 50% retracement level of 1 (normally this level is surpassed by second waves) and the decline since 6/3 has been retraced by more than 78.6%. Prices should reach 1100-1120 before reversing if this count is correct. There are a few gaps above the current level that would be nice to see filled, although this is not required.

If the above alternate is correct, prices may fall short of 1100 before reversing. There should be one more move higher in the form of a small 5th wave before a pullback however. The form of this ensuing pullback should help us to determine whether or not wave [iii] is underway. Also the triangle apex level (~1085) generally holds if a correction is unfolding. Certainly 1080 should hold if the uptrend is to continue.

Note that part of triangle wave iv overlapped wave i. However since wave [E] of iv completed outside wave i territory, there is no problem with this count.

The larger view remains the same.

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