Sunday, July 8, 2012

Friday 7/6/12 Market Update

In the long term, the trend still appears to be higher after a recent pullback and retracement of most of that pullback.  There is no change to the view from the last update.

The market is in an important position however.  The 1305-1315 area should hold price if the market continues down following last week's high.  If this support breaks, there is likely a larger downtrend underway where [2] is still underway or the zigzag that began March 2009 is complete.

The waves still suggest an uptrend underway since the June low.  The wave higher following (2) above looks incomplete as an impulse or a zigzag-family pattern.

Note that the degrees of waves have changed slightly since the last update but the structure of the count remains the same.

A recovery bounce following the Friday loss looks to be underway.  The expectation is for another impulse wave higher underway where prices exceed the highs last week.

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