Tuesday, June 22, 2010

3 Wave Pullback


So far the decline from yesterday's high in the SP500 appears to be a clear 3 wave correction which is confirmed by the symmetrical b wave triangle and the fact that the decline has remained within parallel channel lines. It would be surprising if this is all of the correction and we should expect it to become more complex, perhaps up tomorrow into Thursday and then down into Friday's close for example. Once the correction is over the market should move higher into July.

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