Thursday, September 30, 2010

Thursday 9/30/10 Market Update

There was a gap higher in the morning followed by a big reversal. Upward corrective looking waves followed. Because the sell-off resembles an impulse wave and prices broke below the lower wedge line (eliminating wedging), it appears that ending diagonal wave (v) completed today. If a larger ending diagonal is underway, the alternate labeling above will apply.

It was originally believed wave (v) would complete Friday at the soonest. The reason for this was due to the minimal high seen 9/28 that has now been labeled as wave iii. Even though (v) is not pleasing, the above count appears to be likely at this time. The sell-off should continue tomorrow perhaps following some limited upside.

(v) should have completed an impulse higher since 8/31, wave [c]. As labeled, [c] is the final wave within flat wave 2.

As discussed in the past, wave [c] has several broken guidelines with a corrective feel. It is well suited as an impulse in the 'c' position of a flat.

A decline that will take prices under 1000 should be underway.

Please note that the completion of wave [2] can be moved to an April level using the alternate count suggested here.

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