Thursday, January 21, 2010

Line In The Sand



I've updated the unfolding progress of the combination correction. It may be that wave c of [y] has completed with this morning's low, or nearly so, but typical downside targets for broadening formations are about 1/2 the width of the pattern. This puts the downside target for c at 44.82, which is still above the support level of 44.73. Another possibility is that c could turn into a double zigzag which could move the bottom of the correction into next week.

At the moment I still don't see cause to believe that the top of the rally is in.

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