Monday 5/17/10 wrap up

Five waves down can be counted from last Thursday's highs at the lows we had overnight last night, I'm labeling that as a wave "a" with the up-down since then as a "b" and "c" in a zig zag.  Going out on a limb, my guess is that we've seen the end of a 2nd wave correction to a wave 1 which topped last Thursday and we should rally strongly from here.  The Vindicator supports that argument.

The Buy line in the Buy/Sell Vindicator ticked up Friday at the close thereby issuing a buy signal, today it ticked back down this morning and then back up again about mid afternoon generating a second buy signal.  By the end of the day the Buy line was clearly accelerating up and the Sell line curling down as well as prices breaking up out of the channel from last Thursday's highs, all of which confirms the long position and the suggested Elliott count above.  Also note the bullish divergence on the 30 minute V Stoch.