Tuesday, June 14, 2011

Tuesday 6/14/11 Market Update

Little has changed since yesterday's update. An upward corrective wave should be underway that is likely flat wave 4.

The zigzag action lower since 6/9 suggests an upward correction is underway. The strong advance today to nearly Thursday's high suggests impulse wave [c] of a flat wave 4 is unfolding. Wave 4 is now greater in width than wave 2, but 4 may still be extending; that is, the flat labeling may only be wave [a] or [w] of 4 rather than 4 itself.

A zigzag down since May is possible, but the zigzag higher since March has nearly been fully retraced suggesting a flat since February is underway. So with a triangle or double difficult to imagine at this stage for reasons of symmetry and proportionality, respectively, an impulse lower since May is the preferred view.

The longer term is not exactly clear, but a continued climb since March 2009 is expected. There should be at least one more multi-month motive wave higher after the correction since February completes.

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