Tuesday, November 23, 2010

Tuesday 11/23/10 Market Update

As discussed in the last few updates, the overall picture is unclear at this time.

The market broke lower today raising doubts about the short term uptrend over the past few days. At the same time, there are corrective waves since the 11/9 high. This view has not changed since 11/18. Unfortunately the count is far from certain at this time, but the above idea captures the features of the market action since 11/9 well.

This count also works well in the larger context.

With a reasonable degree of confidence, the last recovery high should be challenged in the near future, but it appears the market has not yet completed its pullback. If the pullback lasts for several more weeks, the alternate count found here is in play. Hopefully the market paints a more clear picture in the near future.

Note: The next update will be Sunday 11/28 since Friday is only a half day of trading. Have a great holiday!

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