Wednesday, May 5, 2010

Still selling...

Well, we didn't get our push down but we did get a lower low, which puts us most likely in wave 4 of 3. Going for waves of alternation between 2 and 4, I'm forecasting a triangle here with a nice thrust down starting late Thursday or Friday. Since our wave 3 turned out to not be so strong, I'm looking for an extended wave 5 of 3 to really get some strong selling.

A break of the wave b low negates this forecast and either puts us in a wave 4 flat (should today's low hold) or puts us in a subdividing wave 3 with wave 2 coming at today's high.

A break of today's high puts us in a zigzag correction or yet another 1-2 subdivision. Monday's must not be exceeded otherwise the correction is over and we should see immediate new highs.

Best of luck!
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