Sunday, October 24, 2010

Friday 10/22/10 Market Update

The view expressed in Thursday's Update has not changed; wave (y) of [iii] should be underway. The extremely tight 5 point range seen Friday should be complete wave b of (y). There is a good chance prices gap higher tomorrow.

Upside should be limited tomorrow with perhaps [iii] completing at 1193. Following this move, a sell-off should follow taking prices into at least the low 1180s. Wave [iv] may also complete tomorrow.

If all goes as planned, wave (Z) will double top with the April high or come close to doing so later this week. Because the coming top will be so minimal if there even is one ((Z) may truncate) and C of (Z) is an ending diagonal, there should be a strong sell-off following the up move that began 8/31/10.

The entire pattern since March 2009 (shown in an earlier post here) will complete after (Z) winds down.

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