Wednesday, June 1, 2011

Wednesday 6/1/11 Market Update

With the ending diagonal count suggested in yesterday's update now essentially invalid, the count since March 2009 has changed to an alternate count. In the short term the expectation is exactly the same as the one suggested yesterday; a move under the diagonal's low implies a larger correction is underway, but should be nothing major.

The reason for the substantial change is due to proportionality reasons. The count is now more simple than the last which is a great benefit.

If there is an impulse c wave underway, an ending diagonal wave [5] should be underway. This is due to the zigzag nature of the rally since March and the wave [5] limit (due to wave [3] being shorter than wave [1]).

The complete diagonal pattern last month (May) may still be a valid 3-3-3-3-3 leading diagonal A wave. The complexity of this wave works well with this idea.

Following A, the primary count is a completing wave [i] of C of (2), but C may not be subdividing.

The May low should be taken out before (2) is complete.

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