Wednesday, April 1, 2009

XAO - Still correcting

Continuing on from yesterday's post discussing the suspicion that a more complex correction was unfolding was justified today.

The Australian All Ordinaries flip flopped into negative and positive territory throughout the day, but the underlying action implies that an expanding flat (3-3-5) correction is unfolding.

Wave 'A' and Wave 'B' are both 3 wave moves which increases the odds that a flat is forming and the higher low before the close supports the end of wave '2' up

The XAO action after today needs to push higher tomorrow and develop a small wave '3','4' and '5' to complete the 'C' leg of this correction and a break above 3545 would certainly support the expanded flat scenario.