Monday, August 30, 2010

Monday 8/30/10 Market Update

The impulsive count for 3 suggested in Friday's update remains valid. Wave (ii) of [iii] of 3 appears to be complete as a small second wave; it retraced less than 50% of (i), a sign of weakness. Weakness is also seen within (ii) where wave c was a small ending diagonal that may have actually truncated.

An unfolding triangle is also an option as suggested in the alternate above. A triangle in this position is labeled as a completing b wave.

The decline today began in a choppy fashion, but just before the close broke under the trend line that had been forming all day. This break is the sign of a 3rd wave completing. A continuation of the decline should go well into tomorrow before a short second wave bounce. If the move lower tomorrow is more choppy and less impulsive, the completing wave b of (iv) triangle will become the primary count.

A solid break under 1000 should be coming this week. Strong selling should come into the market soon.

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