Friday, May 13, 2011

Friday 4/13/11 Market Update

Unfortunately there was no update yesterday because Blogger was under maintenance and no post was possible.

The major retracement of yesterday's advance and weak bounce following today's low suggests the market is still completing a downward wave.

Waves have been fairly choppy since the last recovery high. Assuming there is not a breakdown significantly below the lows established this month, a completing downward correction makes sense. Because of the overlap between impulse waves since March, a completing wave 2 of (3) makes sense.

The most simple view for this wave is a double zigzag as labeled above (the alternate count from Wednesday's update). There will perhaps be one brief new May low before a strong rally ensues which works well with the very short term action.

In the longer term, there is still a clear uptrend in place using a variety of metrics.

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