Friday, March 11, 2011

Friday 3/11/11 Market Update

There is no change to the count shown in yesterday's update. An impulse wave contained in a larger correction can be labeled complete at today's low as described above.

Following today's low, a clean impulse wave higher may be complete. If the count is right, the 5th wave was extended. Prices should correct at least back to wave [4] territory Monday morning. Please note that the degree of this upward impulse wave is a guess.

At this time, it is far easier to find a corrective wave lower within a larger uptrend than a set of impulse waves lower within a new downtrend. In addition, there are momentum concerns for the bearish case. Because of the concerns stated here, a complete wave [iv] is the primary and a new bear market is the alternate.

Notice how the channel line above was nearly reached today. There is no change to the larger count.

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