Dow Jones ~ Elliott Wave Count 10 May 2010

When I posted an updated Elliott Wave count for the Dow around lunch time yesterday I thought that wave [iv] had already ended. The market drifted lower into the afternoon though and made the low for the day around 2 pm. Then, the Dow started to rally after setting up a nice inverse head and shoulders which made me to sligthly change my count as follows:

Wave [iv] unfolded in a flat and the following rally was wave [v] or a part of it. As soon as this impulse is finished it'll be interesting to see how far the markets will correct.

A drop below the wave A/1 high and the bearish scenario is to be preferred and the stock market should crash this/next week.

Only a small correction though followed by another high later this week would be bullish since we'd have completed a motive wave from the lows.