Fifth Wave - 11/8/10

Wednesdays Twitter update said the NY composite index may be breaking out of a sideways wave 4 pattern from the Oct 13 high and a 1-3 wk 5th wave rally may ensue and the Dow may surpass the April high on that rally. That happened on Thursday/Friday.

The alternate possibility would indicate that the 5th wave will have already topped by today followed by a correction of some sort.

The strength of the market since the late September low indicates that the four year cycle low probably bottomed at the July or September low. The rally from that low usually lasts at least one year so there are several months to go at least.

The alternate count shown in the last few blog updates was a for a Primary wave [B] or [2] low at the July or September low. That now is the best count. An updated chart with counts will be posted later.