Thursday, December 10, 2009

Elliott Wave Update 10 December 2009 ~ I want my X-mas rally : D

SPX: Well..., we got the gap up but nothing more. The SPX traded the whole day within a range of only 6 points.

So far, it appears that the market is still in micro wave [1] of iii. That means that the main part of this rally ([3] of iii) should follow next week.

What concerns me a bit is that the bearish count is still alive. As I mentioned yesterday, 1119 could have been the top of wave (c) and of this bear market rally. If that's the case, the diagonal to 1086 would be a leading diagonal in the wave i position. From there the market corrected in three waves exactly to the 62% retracement level, the common level for a wave ii. So, 1084 would be wave i, 1106 wave ii and wave iii would follow tomorrow.

Primary count: in iii of (c) to new highs (1086 should hold)
Alternative count: topped at 1119 (in iii of (i) down)