Tuesday, September 28, 2010

Tuesday 9/28/10 Market Update

The slide that began near the close yesterday continued today before a rally ensued. This action is exactly what the count presented in yesterday's update and earlier predicted. Given that the rally today has already challenged Monday's high and can already be counted as a nearly complete zigzag, it is possible that ending diagonal wave (v) will complete later this week.

Wave iii will be equal to wave i near 1159, so moving above this level tomorrow is an indication that wave i is still underway. The expectation tomorrow is for a small follow through to the upside before wave iv begins. Please note that wave iii is a corrective pattern so its precise form and sub waves are inherently difficult to predict.

Ending diagonal wave (v) should complete impulse wave [c]. It appears that the final level may be in the 1150s or low 1160s.

Momentum has clearly been lost since the rally began 8/31.

A corrective flat wave appears to be nearly complete. Please note that the the completion of wave [2] can be moved to an April level using the alternate count suggested here.

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