Monday, August 22, 2011

Monday 8/22/11 Market Update

The market traded sideways today after a morning gap higher. Following the same primary count found in yesterday's update, wave [x] of B of (4) now looks incomplete. The most simple view is a sideways correction since Thursday, but the labellings for this wave are largely unclear. The most likely count is a flat, but notice that an ending diagonal lower that began Friday is a possibility.

The market is likely winding down an impulsive move lower that began May 2010. There are also a number of options at this level, but the most simple one is labeled as the primary count above.

In the longer term a zigzag higher likely unfolded during the March 2009-May 2011 period. The waves suggest the 666 low will be tested.

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