Tuesday, April 19, 2011

Tuesday 4/19/11 Market Update

The count has not changed following yesterday's update. The market appears to be taking off in an impulsive fashion as described above. The "3rd of a 3rd" wave of (i) of [iii] of C should be underway--the market should be strong tomorrow.

A move above the high of wave (b) of [ii] will be a bullish development from a wave perspective. If this level is not taken out, the other possibilities as stated previously are a "3rd of a 3rd" wave lower or second zigzag lower following the completion of the rebound that began Monday.

The longer term view is not entirely clear, but there are several reasons to expect a new recovery high. First, it is a bit unusual for waves, such as the March-April impulse wave, to be truncated. Second, any zigzag count since 7/1 has disproportionate impulse 'A' and 'B' waves.

A larger view of the count can be seen here.

blog comments powered by Disqus