Friday, July 8, 2011

Friday 7/8/11 Market Update

Following the complete impulse count in yesterday's update, the market made a determined move lower today. Since yesterday's high, the best count appears to be an impulse lower followed by a corrective, choppy bounce.

The short term structure of what should be downward corrective wave 2 is not even close to clear at this early stage. In the short term, any rally above Thursday's high should quickly pull back. Action like this would be indicative of a sideways wave 2. Sharp corrections, not sideways corrections, are typical of second waves, but the strength of 1 may result in a weak or shallow wave 2.

The market should make a new recovery high after some consolidation. A multi-month rally should still be underway.

I will be out of town next week and unfortunately cannot guarantee that there will be any updates during that time.

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