Wednesday, 7 May 2008

Back in Time to see the Zigzag Complete?


When I last posted about a week ago focus was on the developing Zigzag pattern from the March 17 low. I wrote: “However, we must still wait for confirmation that the zigzag pattern is complete.” I now believe that the odds are very high that we saw the pattern complete at the May 2 high. A weak day today would go a long way in confirming that view.

And what happens after the zigzag? Again; the wave principle allows for two scenarios: An “x” wave or another corrective pattern. The former would not see the market decline below 1324 while the latter could retrace the move up from March 17 almost completely.

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