Thursday, November 4, 2010

Thursday 11/4/10 Market Update

There was a large move higher today clearly invalidating the ending diagonal count suggested in yesterday's update and in earlier updates.

The view that a zigzag since 8/31 is unfolding has not changed. This should be wave (Z) with impulse wave C underway. The newly labeled wave B of (Z) is small, but is similar in size to the other B waves above. Additionally wave C is shows clear subvisions while A does not, a alternation evident throughout the rally since March 2009.

A new recovery high was reached today as the market is likely making an exhaustion rally, perhaps extended wave [v] of C.

There were a complex set of zigzag waves last month that almost certainly formed a triangle wave as illustrated above. Forming a count around this idea, the best proportionality between waves can be seen in the above count. Wave A is well proportioned with C. The waves within C are well proportioned with [iii] nicely extended.

Wave (iii) of [v] is likely completing, but it is possible the wave [iv] triangle actually completed yesterday implying [v] is nearly complete. The target for [v] is ~1230 but this is preliminary estimate.

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