Monday, May 2, 2011

Monday 5/2/11 Market Update

The market gaped higher but was not able to hold the gains. Looking at the form of today's decline exclusively, a zigzag following today's recovery high appears to be the best view, but something more impulsive developing is possible.

Following the March low, the count since Friday's update has changed but the uptrend since that time appears to be intact. The count for this wave is not clear.

A small, sharp, wave 4 as labeled above makes sense given the small size of what appears to be wave 2 and alternation between the corrections.

It would be nice to see wave (3) continue higher so it is longer than wave (1) and so there is sufficient room for wave (4). If prices continue breaking down, a subdividing wave (3) will be the next view.

The larger count has not changed. Higher prices should continue in May.

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