Sunday, October 3, 2010

Friday 10/1/10 Market Update

The market was in a position to trade lower following a possible ending diagonal wave (v) of impulse wave [c]. While this option has not been invalidated, it is now the alternate count due to the sideways action seen Friday. Prices should move lower rapidly following an ending diagonal and this has not occurred. Instead, there is a very wide set of choppy waves.

Tomorrow the expectation is a conclusion of the choppy sideways action (if it has not already completed) followed by a brief move lower to form a zigzag since 9/30. This corrective move should be wave ii of ending diagonal wave (v). If the count is correct, (v) will complete this week or next.

Wave [C] of ii is expected to move into the mid to low 1130s, below the above trend-line. Following this should be another set of choppy waves higher. If instead prices break below 1130 then 1120, minor wave 3 should be underway.

Please note that the completion of wave [2] can be moved to an April level using the alternate count suggested here. In any case, a very wide correction should be nearly complete.

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