Tuesday, December 7, 2010

Tuesday 12/7/10 Market Update

1235.05 was reached immediately after today's gap higher. This level was not held. The market sold off to nearly retrace the entire day's positive move with the high established Friday 12/3 being crossed in the process. This action is best viewed as 4th wave action or action following a complete impulse wave since C began, 11/30.

With some modifications to wave C's count (since the last update), the above count can describe a market top completing the entire move since March 2009. If the point of recognition gap is moved from 12/4 to 12/5 (ignoring breadth and the typical "3rd of 3rd" gap), higher prices can continue in a completing impulse since 11/30. The TRIN closed low again today so in my mind the market should correct soon if it has not done so already.

Note: I am out of town. Regular Elliott Wave updates will resume Sunday 12/12.

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