Tuesday, July 5, 2011

Tuesday 7/5/11 Market Update

A winding down impulse wave that began 6/28 is still the primary view. This has not changed since Friday's update. After some additional consideration of waves around 6/30, a few labels were moved down resulting in wave iii completing yesterday, not wave [3].

There was a sideways trading range today which was likely most or all of sideways corrective wave iv. If iv is complete, it was a flat.

1345 or thereabouts must not be exceeded if the market is in a larger downtrend since early May. From a wave perspective it is more likely that new recovery highs lie ahead however due to the retracement levels already reached and the wave structure since late last month.

The longer term is also bullish given the sideways action since February (likely a flat) and large 5 wave advance since the summer last year.

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