Sunday, March 11, 2012

Wave 4 Top?

The current wave structure from the 1340 low has been difficult to decipher. It has been almost a straight-line move, void of any meaningful pullback. With the price action so closely packed, it is hard to discern one wave from another. Several of the wave terminations were in odd places, causing some measure of concern.

It now seems possible, even probable, that Wave 2 was an inverted corrective wave. This creates a much more cohesive looking wave. Friday’s 1374.76 high would now seem the likely termination point of this wave, likely Wave 4. If it is, we should now head back down to test the 1340 lows. A move above 1374.76 remains the level that would signal another move up.

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