Monday, August 31, 2009
Pullback Likely Unfinished
Today's correction in the major indexes looks incomplete. It looks as though one more down move is needed to complete 5 waves down. Many ellioticians will be saying it is the beginning of a new downtrend, but most likely it is wave c of a flat correction. The only question is whether the next move down will complete wave c or whether it just completes wave i of c. There is no way to know at the moment. The least probable, though possible, interpretation is that the entire rally has topped and we are beginning a new downtrend. Tomorrow's action may clarify.
Posted by R. Craig Pritchard at 5:27 PM