Tuesday, April 5, 2011

Tuesday 4/5/11 Market Update

The market completed what appears to be an impulse higher that began late in yesterday's trading. The last recovery high was not taken out however, prices corrected beyond the 61.8% retracement level of the impulse, and that impulse is very small in relation to (i) of [v]. Because of these observations, there is good reason to believe the market is still in a corrective pattern that began at Friday's high. A flat seems to be the most simple view.

It is possible wave (iii) completed today following a complete wave iv of (iii) yesterday, but a more clean count is the one shown above.

The impulsive count since 3/16 still looks accurate although the action over the past week is not entirely clear.

Prices should reach at least 1344 before any large decline has a chance of ensuing. This level may not be reached until next week.

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