Market Inches Higher

Volume remained strong yesterday and price action was fairly positive. It is reasonable to assume that since indices recovered their 50-day averages so convincingly over the past few days of trading that we will at a minimum see a retest of recent highs. Likewise, double tops are fairly rare, so we could see a fairly decent rally take shape over the month of September. Elliot wave patterns put both the S&P and NASDAQ at the crux of a 5th wave development. At this point we are taking a “wait and see” approach and will be watching carefully for any warning signs that the trend is faltering.