Monday, October 18, 2010

10/18/10 Market Update

The market rallied today above the previous high set 10/13. Because upward momentum appears to be waning, a completing wave [i] is more likely than a completing wave [iii]. The larger view is still a completing ending diagonal C of (Z) wave.

In the very short term, an impulse wave since 10/15 seems to be the best view. This works best as the final leg of wave [i] which appears to be a double zigzag. Please note that it has been very difficult to count the recent waves, so none of the counts are high probabilities at this time.

It will be difficult to hold the above trend line. Even if this line is broken, this does not necessarily signal a trend change. In fact it is expected that the line be broken as wave [ii] corrects into the 1150s.

Prices may double top to complete the move since March 2009.

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