Wednesday, March 9, 2011

Wednesday 3/9/11 Market Update

The width and complexity of the sideways action since the last recovery high has caused a change to the count as described above. Unless wave (ii) (as described in yesterday's update) is unusually wide and complex, a move higher should be in the cards after a sideways correction since the last recovery high completes.

A triangle wave [iv] is the most simple way to describe the sideways action. The wave (b) described above actually works best as a double zigzag. This is important because considering the surrounding structure, it is difficult to work this wave into a more bearish count (e.g. the one described yesterday).

In the short term wave (d) appears to be incomplete. The choppy sideways structure that began yesterday is unclear and may be incomplete. This works well considering that it is typical for each leg of a triangle to look different from the rest. On that note, a complete wave (d) is also possible, but for proportionality reasons it is not as likely that wave (e) is underway.

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