Tuesday, June 15, 2010

A Clear Impulse Wave

After several weeks of wild market swings, we finally have something that looks like an impulse wave. The Qs have clearly moved up in 5 waves from the June 8 low. The bears will be calling this the completion of a small degree 2nd wave that will precede an imminent 3rd wave decline. We will only know for sure if and when the June 8 low is taken out. My view is that the current impulse wave is wave (i) of [c] of B up. The most bullish interpretation, not shown, is that this morning's advance is the beginning of wave iii of (i) of [c]. The most likely target is the 5/13 close at 47.85 to fill the gap from 5/14. The next most likely target is the 5/3 close at 49.93 to fill the gap from 5/4.

At least we should know one way or the other by the end of this week or the first of next week at the lastest, but I am leaning to the upside for better or worse.

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