Monday, November 8, 2010

Monday 11/8/10 Market Update

It appears that wave (iv) is still underway as suggested in Friday's update. It most closely resembles a complex zigzag family correction, but there are many other alternatives. While lower prices are expected in the short term, there is nothing impulsive about this pullback. 1214-1218 is the expectation if a triple zigzag is unfolding as shown above.

If wave (iv) is actually complete, look for a strong "3rd of 3rd" open higher tomorrow.

The size of (iv) will help us determine a better target for the completion of [v] of C. For now 1230 or thereabouts is the best Elliott target.

Prices should have broken out of a 4th wave triangle. This and the nearly complete extended impulse rally following the triangle makes a top likely this week.

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