Monday, July 13, 2009

Scenario 1 Gets the Nod

The market was pretty unforgiving in its reversal this morning. Once the gapped was filled, the market ran hard to the upside with a few stops to consolidate in very tight ranges. Since we have pushed the market into a very oversold condition (hourly charts), I would expect some back and filling tomorrow before resuming the move up to my minor wave x target (905-915). If the market is able to push through that area, then we have to consider the possibility of a retest of the highs.

One other note, should we break today's lows, then wave x (or some other subdivision) is in and we head down to our targets.

1 comment:

  1. Great call Rich.

    You have a great ability to simplify the emerging wave counts.