Elliott Wave Live: Mid Day Review for Aug 2 , 2010

A new month and minor wave 2 on the daily chart hasn't completed. Other market pundits felt that wave 2 ended on July 30, 2010 in a truncated 5th wave of c at 1113. The truncation can best be seen on a 60 to 120 min chart. I wasn't sold on that analysis as it seemed to be a stretch given the overlap of waves down from the peak that followed.

Today's gap up and subsequent rise above 1117.75 removes the possibility that wave 2 had ended. Price remains within channel lines established between 1006 and 1053 (bottom channel) and the parallel upper channel at 1096. This is the signature of a corrective wave. Until the lower boundary is broken, I can't see getting overly committed to the downside here. While I have labeled the corrective structure unfolding as a Double Zig Zag, my confidence in the count is still questionable. Other possible counts exist with upside potential. Therefore, the trend is up and we should not fight it. So plan on further upside potential near term. As soon as a more definative wave count can be established, I will make a post.


Best of Trading!