Tuesday, March 1, 2011

Tuesday 3/1/11 Market Update

After the morning gap higher, the S&P 500 quickly turned lower. The market trended down for the remainder of the day before losing 20.89 points at the close.

A break lower after some limited upside was the view suggested in yesterday's update. Moving forward with the same count, a completing impulse lower as described above is the preferred view. Note that the 61.8% retracement level of (ii) has been exceeded which supports this view.

At least a zigzag correction lower since the 2/11 high should be underway. That is at least a double bottom with the 2/24 low last week.

If there is no downward correction underway that will carry prices higher since the summer lows, a significant correction should be underway. A possible longer term count is illustrated below.

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