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Friday, August 14, 2009

Elliott Wave Update ~ 14 August

The intraday ascending triangle was a miserable failure. A red herring. Too obvious.

The bigger the triangle, the less chance it will fail is my motto. The market may be tracing bigger triangle waves for Minor B wave. Up and down zigzags. The DOW and SPX certainly looks that way at the moment and so far its contracting. Dip buyers.

The NASDAQ, as it often does, has its own thing going on. Slightly differing pattern, maybe an [w][x][y] thing going on. Triangle waves can be so damn unpredictable from minute to minute but stepping back, the form takes shape nonetheless and the overall rules must be obeyed.

At any rate, that was a fairly ripped down move this morning yet buyers stepped right in at support and bought just enough all day long. But more importantly, there seems to be a lack of sellers and a lack of fear.

So the Minor B wave continue to play out it appears and the market continues to maintain support. Sooner or later B wave will end and the market should go higher is my guess to complete the final Minor C wave move higher.

Will we see a deeper retrace for Minor B in a more complex corrective? So far it defies gravity. A triangle actually makes sense. I always think that a deeper retrace (below 956) will hurt the overall "pyche" of the rally and damage prices too much at this stage. But that is assuming that P2 has a limited window of opportunity (which I tend to think it is limited).

Look at that squeeze afterhours. That might be the [d] wave.
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