Tuesday, June 1, 2010

Tuesday 6/1/10 Market Update

There was a noticeable sell-off near the close today, so the count has changed. Wave [ii] has been marked complete although less than 50% of [i] has been retraced. The traditional second wave retracement levels were not reached which is a sign of weakness in the market. Also the inverse head and shoulders pattern suggested last week here was clearly not confirmed.

There is no incomplete wave [ii] count suggested above, but an incomplete (x) wave is a possibility.

As can be seen in the 1 minute chart above, the recent waves look very corrective. There is no clear impulsive count lower at this time.

The larger view remains the same. If wave [iii] is underway, 970 is an initial target for this wave with lower prices likely.

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