Wednesday, September 15, 2010

Thursday 9/15/10 Market Update

The market continues to grind higher in very overbought conditions. It was stated in yesterday's update that the rally should continue with at least one more move higher. This view was confirmed today.

The impulse advance since 9/7 may be following the above count, but it may be further along. It is difficult to determine with accuracy when the rally will end, but it should be sometime next week at the latest.

There is a growing heaviness to each correction with the "3rd of a 3rd" wave being encroached upon. This suggests a weak rally higher that may be more complete than the count above suggests. Truncation within (c) is possible.

The 1130 area should stop the advance. There may be a small move beyond 1130, but this will not invalidate the count.

The rally since 8/31 should complete zigzag wave [y] which is contained within double wave 2. There should be a sharp sell-off following wave 2 that takes prices below 1000.

I will be on vacation this point forward. The next regular update will be Sunday 9/26 or so. Thank you all for following my work!

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