Thursday, May 5, 2011

Thursday 5/5/11 Market Update

The market continued lower today, but as mentioned in yesterday's update, the bullish longer-term view has not changed.

A simple single zigzag count is shown above. There is good subdivision alternation between the impulse legs, but some lack of symmetry.

If the market breaks under today's low and trades under the channel above, there is a very good chance the market is tracing out a more bearish count such as the alternate shown above. But since there was at least a zigzag higher since mid-March, the longer term view will still be bullish if a breakdown occurs.

The larger view has not changed. A strong rally, wave 3 of (3), should take prices above 1400 with [C] perhaps destined to reach all-time highs.

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