Wednesday, April 20, 2011

Wednesday 4/20/11 Market Update

It was stated in yesterday's update that the market should be strong today, and it was. Continuing forward with the same wave count, the market gaped higher today in what should be the core or "3rd of a 3rd" wave of (i) of [iii] of C.

The market should come close to making a new recovery high as (i) winds down and perhaps completes tomorrow. Near the last recovery high good resistance should be found to temporarily stop the rally and initiate a wave (ii). Wave (ii) will probably be a zigzag-family pattern retracing half or more of (i) (these typical features of second waves).

The rally since 7/1 should still be underway. It appears that the rally will continue for weeks or months more.

Note: The market is closed Friday 4/22 for Good Friday. Tomorrow will be the last day of trading this week so there may not be a blog update tomorrow.

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