Tuesday, January 11, 2011

Tuesday 1/11/11 Market Update

The count has changed somewhat since yesterday's update. This is due to what appears to have been an impulse higher since Monday labeled above as wave (i) of [v].

A new labeling is above with the old labeling as the alternate. There are other ways to describe the congestion over the last few weeks, but proportionality seems to be best using the above count.

Following what appears to have been a clear zigzag lower today labeled wave (ii) of [v], prices should continue pushing higher, perhaps to 1300. Perhaps there is a top next week with one not likely sooner.

Prices are continuing past the 61.8% retracement level of the 2007-2009 bear market, but the proportionality between A and C are growing stronger every day. A continued rally does not impact the longer term view.

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