GLD Wave Count - 1/24/10

Below is the GLD wave count showing wave (4) in progress. Gold stocks appear to be completing a large zigzag which helps to confirm this count.


Chart: Six month chart of GLD

New Dow Industrials Wave Count - 1/24/10

The last stock update called for the up move to continue to at least January 13th before a correction. The 14th ending up being the middle high of a triple top. The final top occurred on the 19th which was followed by a sharp selloff into Friday's close.

It appears the best count at this point will label this decline as wave C of a running flat from the October high as shown on the chart below. The most likely support area for this wave is Dow 10021 to 10075 sometime this week, before Friday. That flat would complete wave (2) from the October high. That means wave (1) of [3] from the July low ended at that high but the good news is that wave (3) of [3] is about to begin.

The alternate count would label this decline as wave a of Y of (2). If so, wave a of Y would be the first wave of either a flat or triangle and the correction has some time to go timewise but the price low could be this week.

Another alternate count would label the current correction a wave [4] from the March/2009 low. Wave [5] under this count would have to be shorter than the wave [3] length of 2000 Dow points since wave three can never be the shortest wave.

Chart: One year chart of DJIA