Tuesday, August 24, 2010

Tuesday 8/24/10 Market Update

The gap down today on good breadth was likely the point of recognition wave of (i) of [i] of 3. A complete wave [4] zigzag with truncated wave (C) can be seen.

If there is truly truncation and [4] does not become wider which, 1046 will be broken to the downside tomorrow with an unfolding wave [5]. A downside gap may be seen. By 'rule' of alternation, wave iv should be a sharp correction.

A series of 4th and 5th waves should lie ahead as wave [i] of 3 completes.

More than 61.8% of the wave [c] of 2 rally has not been retraced. Because of this, it is a good sign that the ~1010 low will be broken to the downside with a a larger bear market underway.

The larger view still calls for prices reaching well into the 900s in the coming weeks and months.

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