Monday, August 9, 2010

Monday 8/9/10 Market Update

The count has not changed since Friday's Update. If the labellings above are correct, the market should top in the morning hours then sell off for the remainder of the day. 1130 is the target. The move higher tomorrow should be the completion of wave c of (v) of [c] of 2.

Even if the count is not correct, an impulse higher since 8/6/10 should be nearing completion. The deeper prices move following this wave higher, the more likely it is that a significant top has completed.

Because of the choppy, corrective looking waves higher, it appears that an ending diagonal wave [5] is completing. A completing wave (B) of [4] is also possible, however wave [4] would be very wide in relation to wave [2]. However if there is a substantial gap down below the mid 1120s tomorrow, this is probably (C) of [4] completing.

Even from this larger view, an impulse since 8/6 looks nearly complete. Before it is possible to break and hold above 1130, in my view a pullback is required.

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