Thursday, August 12, 2010

Thursday 8/12/10 Market Update

The 1 minute chart above has changed little since yesterday's update. An impulse lower since Tuesday's rally high may have completed today as wave iii. The entire more lower is quite odd however, especially the drift lower following the opening low yesterday. If this sideways/downward action is not as market above, the next best guess is that it is wave iv. The shallow bounce following the low today resembles a 4th wave however.

There are quite a few unclosed gaps above current prices. Considering the two set earlier this week will not be filled for a long if the count is correct, the gaps are a bit surprising. Because of this and the unbalanced move lower, I do not have total confidence in the count. At the same time, the rise since early July is corrective in nature.

Since early July, perhaps a better view is a zigzag higher (with 'c' an ending diagonal) followed by corrective zigzag waves still unfolding. One final zigzag higher taking a month or so more may complete a larger double zigzag correction.

The next update will be Sunday after some reassessment.

blog comments powered by Disqus