Tuesday, September 20, 2011

Short Term XAO update

The last XAO short term post indicated the end of wave 2 was imminent, however, an aggressive push downwards has failed to materialise to indicate the next leg down is clearly underway. The wave structure does also not appear to be moving in 5 waves down (yet) and this evidence implies wave 2 is unfolding as a flat correction.

At this stage in the wave development, the structure of wave 'a' and the unfolding 'b' wave appear to be 3 wave moves, indicating corrective action in both directions for the short term. This most likely indicates a flat for wave 2 is in the process of unfolding. 

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