Wednesday, May 4, 2011

Pullback May Be Complete

If the [i] [ii] (i) (ii) count is correct, the pullback may have completed at today's low.  If not, then today's low was likely wave a of (ii).  One reason to believe that it may have ended is that the SP500 penetrated and closed above the February high on volume 5% less than the February high.  The High Low Logic index has turned down and could issue a buy signal within the next two days.

One thing is for sure.  If today was the low of wave (ii), then we should see new highs in short order as the market should be in a 3rd of a 3rd wave.  A hesitant move toward the May high would suggest that wave (ii) has more work to do.

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