Wednesday, June 9, 2010

Wednesday 6/9/10 Market Update

Before selling off, prices reached retracement levels between 50% and 61.8% in what appears to have been wave (ii) of [iii]. This is the typical retracement zone for a second wave. An impulse wave down, wave i of (iii) of [iii], appears to be unfolding. A possible count for this wave can be seen below.

A wave (ii) zigzag the ended today may be the best count for a correction. This is illustrated above but there are other possibilities.

The 10 and 40 bar moving average study presented yesterday does not appear to be valid for wave [iii] given that the 10 bar moved well above the 40 bar. However the count on this scale is still quite bearish in my estimation given the clear looking impulse down 4/13-5/25 and the waves that followed.

The larger view remains the same.

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