There was a sharp rally today. For proportionality reasons, the count above has been changed slightly since the last update. The idea is still the same however; there is a second wave down following the high earlier this month which is within a larger uptrend.
A zigzag since March 2009 appears to be underway, but there is still not good balance between the legs of this pattern with c noticeably shorter than a (this is bullish). The shorter-term waves illustrated in the first chart work well with this idea. In the very long term, a sideways trading range since 2000 is the best estimate of action for years to come. In other words, an all-time high ahead is not out of the question.
In the short term, the market looks strong. There appears to have been an impulse higher today with a shallow correction following. This is bullish as long as this is not a zigzag higher underway.
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