Wednesday, August 11, 2010

Wednesday 8/11/10 Market Update

After an uncertain picture yesterday, the big down day today is likely a move lower within minor wave 3 of a larger down move.

An impulsive move lower can be viewed as seen above in the 1 minute chart. The market looks poised to move lower tomorrow within a final 5th wave of an impulse that began yesterday. A period of sideways consolidation (a 4th wave) should follow before another leg lower. It is possible that a 1st wave, not a 3rd wave, lower since yesterday is actually unfolding.

Given that a large ending diagonal wave ([c] of 2) appears to be complete and a large 3rd wave (wave 3) is likely underway, prices should continue to crumble apart for weeks more.

If prices reverse immediately tomorrow, the ending diagonal alternate able is still in play (there is still slight wedging at the moment).

A move lower in the form of wave 3 will take prices well into the 900s.

blog comments powered by Disqus