Monday, September 27, 2010

Monday 9/27/10 Market Update

After today's action, the views expressed in Friday's Update remain unchanged. In the last update it was stated, "the form of this rally [since 9/23] is very corrective...If the market moves above Friday's high Monday, this will add more certainty of a corrective wave beginning 9/23. Because of the size of wave (iv), a correction higher is likely wave i of ending diagonal (v) higher."

Zigzag wave i of ending diagonal wave (v) is illustrated above, but it is possible the low 1120s are tested before another move beyond today's high. The beginning of a major decline is unlikely at this time. Prices should continue grinding higher into early October.

An impulse since 8/31 should complete soon.

Given the larger count, the action over the past few months is likely a corrective move.

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