The market did not have any surprises during the last week. The price unfolded quite as expected. With a completed wave 2 at the January 11, ’10 high (1161.75) followed by wave I.3 at the January 28, ’10 low, followed by a.II at the February 3, ’10 high (1125.10), wave b.II at the February 5, ’10 low. We are now at or close to the completion of what we expect to be wave c.II. However, there still seems to be a potential for the price reaching close to the 1138 to 1142 mark.
It is also important to keep in mind an alternative interpretation of the move down since December 03, ’09, while planning any potential trades:With a possible wave 1 at the December 22, ’09 low (1074.90), followed by wave A.2 at the January 11, ’10 high (1161.75), wave B.2 at the February 5, ’10 low (1044.55), we are now in the making of a five wave advance to complete wave C.2. As per this scenario, our target for the completion of wave 2 will be above the January 11, ’10 high at 1161 and close to the 1185 to the 1190 level, but keeping below the December 3, ’10 highs at 1126.30).
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