Wednesday, December 15, 2010

Wednesday 12/15/10 Market Update

The count has not changed since yesterday's update; a complete impulse rally since 11/30 appears to be the most likely count. For reasons discussed in Monday's update, there is a good chance this impulse wave was C of (Z) to complete the rally since March 2009.

In the short term, the sell-off over the last few days should be the start of a bearish impulse wave, perhaps following the count above. Prices must continue south tomorrow, otherwise the alternate above is in play.

It is difficult to imagine an incomplete impulse wave since 11/30 given the price breakout from the channel above, but this is still an option. So far the decline that began yesterday is choppy.

There are a host of technical indicators and numbers that support a decline lasting for days or weeks. This works well with the count on an intermediate term basis. From an Elliott wave perspective, we are looking for impulse waves down with rally attempts failing at resistance levels.

blog comments powered by Disqus