Tuesday, May 10, 2011

Tuesday 5/10/11 Market Update

With some momentum loss in the short term, the market continued in an upward direction today to take out Friday's high. The upward action in the short term is not clear, but one possible count is illustrated above.

If there is a wave [ii] of 3 of (3) correction coming, my guess is it will be brief with minimal wave crossing.

The count shown in yesterday's update and earlier has not changed. Unless a very wide sideways pattern since February is completing, a new recovery high should be seen this month. It appears very unlikely that there will not be a new recovery high.

The expectation is for a continued move higher over the next several months with new all-time highs possible later this year. As I discuss in the long term here, a second wave bounce since March 2009 is not even listed as an alternate count.

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