Monday, July 19, 2010

Monday 7/19/10 Market Update

Because 5 waves down are now apparent since Thursday 7/15 with a corrective looking bounce following that move, a different wave count has been suggested above. This count calls for a 5 wave move lower before another leg higher completes corrective wave 2. More specifically, the labellings show a zigzag (b) wave down since the 7/15 high which is within upward zigzag wave [y] of (flat+zigzag) double wave 2.

The count suggested in Friday's update is now the first alternate above. A few less desirable options are also listed as alternates.

For the same reasons mentioned in Friday's update, the structure since the 7/15 high has corrective characteristics. As labeled in the 1 minute chart above, the action now counts best as a complete impulse lower, but in my estimation will eventually be fully retraced before a more substantial decline begins.

An expanded view of the new labellings can be viewed in the daily candlestick chart above.

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