Tuesday, November 2, 2010

Tuesday 11/2/10 Market Update

The alternate count suggested in yesterday's update should be unfolding; this is zigzag wave (y) of [v] of ending diagonal wave C. The alternate is a complete wave C at today's high.

Wave b or c of (y) appears to be unfolding at this time; there is a missing wave to a zigzag beginning at yesterday's low and the rally since the swing low today looks more like a zigzag than an impulse. Because b of (w) was sideways and wide, b of (y) may be short and sharp by alternation. This idea would work well with a wave c ending diagonal as suggested above however this is only one of many ways to view the recent action. If the rally since today's swing low was a zigzag, upside will be fairly limited tomorrow.

The rally is still best identified as a zigzag higher with its last leg an ending diagonal. It is hard to deny the numerous zigzag waves higher since October.

If the current count is correct, wave (Z) will truncate creating a bearish environment for the remainder of the month.

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