Wavespeak Update

[MarkedFeed]

The indices extended their recovery efforts today, pressing to new near-term highs as more and more
of August’s decline is retraced. Prior to the long weekend, we discussed the impact of near-term
strength and what it means for price direction heading forward. As far as we’re concerned, the price
pattern could not be more clear. And when the price pattern is clear, it becomes a ton easier to
determine price’s agenda. The only wrong move we can make here is to overcomplicate matters.
Instead, what we need to do is trust the implications of a clear price pattern and trade it accordingly.
In that regard, we expect further near-term strength to carry price above August’s highs from here.
This stance will be maintained as long as price stays above our key downside levels. Once the nearterm
recovery completes, we anticipate a resumption of the mid-term decline that began in April. This
weakness will drive price below July’s lows and into the Fib retracement zones that represent standard
retracement levels of the 2009 advance. After that is accomplished, we can look forward to a
resumption of a long-term uptrend that began in the early months of 2009. This will result in months
of advancing action as at least one more enormous five-wave advance plays out. It’s hard to ask for
much more clarity than that.


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