Monday, July 18, 2011

Monday 7/18/11 Market Update

Following Friday's update, the move lower today was not unexpected. The wave lower since Friday's closing high should be an impulse.

The corrective count this month has been changed to a complete wave (2) double zigzag.

One of the reasons for the change in the short term count is the almost exact 61.8% retracement of the June-July impulse advance. The count is also more simple and typical. Its waves happen to be well proportioned as well.

Unless prices break down under today's low, the bullish count remains intact. Even if there is not an impulse forming since July 2010, there should be a zigzag underway.

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