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Friday, July 29, 2011

July 29

I have put the W wave at the gap down from this morning. We have divergence there on the 15 minute chart. However, on my 60 minute cycle chart, I do not have a bottom signal with the low today. There was no divergence confirmation today. Which means that we should expect lower lows before this wave is done. I think we have the continuation of a relief rally on Monday (likely to test the 50 day MA from the underside) and then more selling either Monday afternoon or Tuesday. More on that the closer we get.

Current count:

And a look at the supporting count in the 5 minute timeframe:

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