Sunday, May 8, 2011

Friday 6/6/11 Market Update

There was a strong move higher Friday morning to trace out what appears to be an impulse since Thursday's low. Later in the day, prices fell to retrace most of the advance.

An impulse lower that began at Friday's high is possible, but this decline looks choppy and non-impulsive.

On a bearish note, nearly 78.6% of the Thursday-Friday impulse was retraced. The market needs to move higher tomorrow morning to maintain the larger bullish thesis.

A move below the channel above or under Thursday's lows would be a bearish development in the shorter term. If this happens, the next best Elliott pattern is a completing downward triangle or flat since late February.

The larger count has not changed. It is difficult to visualize a bearish count in the longer term.

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