Tuesday, January 25, 2011

Tuesday 1/25/11 Market Update

The count has been modified slightly since yesterday's update. There is no high probability count at this time, but the best view is that prices will carry higher as ending diagonal wave [v] of C completes. The reason for the ending diagonal selection is due to the choppy advance and decline since 1/20.

Corrective waves in both directions since the 1/18 high may be an unfolding sideways correction, perhaps wave [iv], however after it completes, wave [iv] would be out of proportion with [ii]. So this count is not desirable.

There was a clear correction lower today (labeled wave (ii)) so an advance higher is likely. The rally since 1/18 is very complex (a double zigzag is the most simple way to describe it which really cannot be extended into a triple zigzag), so a wave [iv] triangle or flat seems unlikely.

The rally continues on but for how much longer? There is considerable momentum loss. Still there is no doubting that the trend is higher.

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