Potential Double Top Here - 9/22/10

The 7/28 update indicated intermediate wave (B) up from the late May low was at or near completion. The Dow made a short term peak of 10585 the following day,with the final top occurring just 7 trading days later on 8/9. That top of 10719 was just 9 points above the 10710 updated price target given in the twitter feed and less then 1% above the initial 10615 target.

The 7/28 update also called for the potential low of intermediate wave (C) and primary wave [B] in early to mid September or mid October. The Dow went down from the 8/9 top to form a triple bottom on 8/25 to 8/31. The final low of the triple bottom occurred on 8/31 just one day before that 1st early to mid September time target.

The subsequent rally has gone slightly above the 8/9 high in what may be a minor wave C expansion of intermediate wave (B) up from the early July low. That still looks like the best count, however intermediate wave (B) could still zigzag upward to form a more complex structure such as a minor wave C ending diagonal or the (B) wave of a flat. In that case, the next price targets up are 10850-10950 and near or somewhat above the April/2010 high. The lower targets are near 10540, 10400, 10215 and 10050.

As long as intermediate wave (B) does not move much above 10950, the 8900 and 8300 targets given on 7/28 are still a valid possibility for the low of primary wave [B or 2]. A higher target in or near the 9400-9600 range has also been identified. The other levels should also be expanded to in or near the 8700-9000 and 8000-8325 ranges. The mid October timing cluster given 7/28 has been expanded to early/mid October.

The alternate count given on 7/29 showed the April/2010 high as being the end of primary wave [1] with the July low completing primary wave [2]. That is still possible but the upmove from the July low looks more corrective than impulsive. The July low should have also been labeled [2 or B]. An upmove much above 10950 increases the chances for that count. A chart with Updated wave counts will be given shortly.