Thursday, September 9, 2010

Thursday 9/9/10 Market Update

A modified labeling of the advance since 8/31 suggests wave (d) of [x] of 2 is complete. Prices have now retraced 78.6% of the decline that began 8/9 or 8/10.

There appears to have been an impulse wave down today following the gap higher. The expectation is for lower prices tomorrow in the form of a 3rd wave.

Wave (d) missed the projected wave [x] upper line, and the upper Bollinger band, by only a few points. Assuming (d) completed, there are the following retracement levels for (d):

38.2%: 1083.37
50%: 1075.26
61.8%: 1067.15
78.6%: 1055.59

There will be a closer look at wave [x]'s legs next week to arrive at more substantial targets.

Keep in mind that it is still possible wave 2 completed with (iii) of [iii] now beginning. It will likely be difficult to rule out this option for some time as wave (e) of [x] should take at least several days (probably most of next week) to complete.

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