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Tuesday, July 21, 2009

Elliott Wave Update ~ 21 July

Some beautiful channeling on this chart. I think the key thing is that a break of the channel lines is an indication that Minor B is underway. The whole A move up reminds of of how the A wave off the 666 bottom topped out in the lower half of the 800 range. Lots of last minute fits of bullishness before a proper B wave price low finally kicked in. And the B wave low (I think 779 at the time) was a quick one that bounced pretty quick.

Same thing going on here? Perhaps. The equivalent is one quick trip down to the lower 930's or upper 920's for a B wave price low. But I am getting ahead of things again. I don't think this A wave from the 869 low has even topped out just yet. But its getting close.

As far as price action, it would seem the bulls want to top this Minor A wave out as high as they can so that any potential severe pullback holds the 927 -934 zone as a B wave pullback price low. Anyways, thats my gut feeling on how the price action is occurring. It just "feels" like a pullback that breaks under key support at 930 area will somewhat damage the rally's chances of making it to 1000 or much higher (which may be the true target - the 1014 38% Fib mark). For instance a drop back to the 915 area would seem awfully damaging. Anyways, I don't have a crystal ball for any pullback price low, I am actually keeping all possibilities open and trying to stay in tune with this rally overall.


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