Wednesday, May 4, 2011

Wednesday 5/4/11 Market Update

Continuing forward with the count shown in yesterday's update, the correction that began Monday should now be complete. A move under the low reached today will be a bearish development in the short term, but the view that a correction began Monday 5/2 will likely not change if this occurs, even if the early March swing high is overlapped.

Wave (3) may actually be wave 1 of (3) since it is lacking subdivision and is shorter than (1). The form of the rally that should now ensue will give clues to the larger count. For now, regardless of the larger count, it is likely that 1370 will soon be tested. The action since Monday should be either wave 2 of (3) or A of (4).

The larger count has not changed. A longer term count was provided this weekend here.

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