Nasdaq Composite Index, June 2010

Just to elaborate on the above, here is the Nasdaq Composite Index which demonstrates clearly how difficult it is right now to draw definitive conclusions on the basis of EW. Here are two charts, same index , showing the most plausible counts at this time, the 1-2, (1)-(2) series as the start of a very bearish down leg, and the wave 1 wave 2 scenario that should be almost as bearish. The third, and bullish possibility would be a very large and simple a-b-c, however, the subsequent a-b-c back up(if it does not change soon) pretty well negates this possibility. Here are the two charts;

nasdaq june 2010 1 nasdaq june 2010 2

What confuses things is the flash crash which is either most of wave 1 if the 1-2, (1)-(2) scenario applies, or most of wave 3 in the 5-wave down scenario. Either way this is bearish but there is not that much room for error. 2425 would be the absolute max. for these scenarios to be negated but given the near perfect symmetry of the a-b-c wave 2 (the thing in the circle) any move substantially higher now would kill the bear.