Monday, May 7, 2012

Monday 5/7/12 Market Update

The count remains unchanged from Friday's update.  It was stated yesterday that a bit more downside today following Friday's big loss would make sense.  This is what occurred today.  There was an impulsive-looking rebound following.

The wave [4] triangle count looks strong at this point, but the market needs to rebound sharply soon.  This will help rule out a downward impulse lower still underway that began at this month's high.  Even it this is an impulse down, the major retracement of the April swing lower paints a bullish picture in the longer term.  The alternate count above is a reasonable assessment of action if the market does not rebound this week.  A sideways correction still developing looks like a clear favorite over any bearish count.

The longer term view still shows an upward trend.  Action should continue higher to new recovery highs as prices approach and perhaps reach all-time highs.

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