Nifty EOD 5-9-2011

Before moving to EW Counts,I wish to place before all of you two quotes:

Q1: P21, EW Principle by Frost & Prechter:

"Sometimes the market appears to reflect outside conditions and events,but at others it is entirely detached from what most people assume are causal conditions.The reason is that the market has a law of its own.It is not propelled by the external causality to which one becomes accustomed in the everyday experiences of life. The path of prices is NOT a product of news.Nor is the market the cyclically rhythmic machine that some declare it to be. Its movement reflects a repetition of forms that is independent both of presumed causal events and of periodicity."

I have produced the above quote from my EW Manual as I find it most appropriate in today's context,when most of the global markets were melting down but Nifty showed great resilience.

And my second quote is about wave B: p81:

"B waves are phonies.They are sucker plays,bull traps---expressions of dumb institutional complacency---"

When so much was happening around us,Nifty got entangled in the B wave and it was for everyone to say "there is something wrong with this market"(p.81)

Now continuing from yesterday's Counts, the retracement ABC from 4720 upwards, had completed its A=4720-5110=390 and the form & depth of B,currently in play,will decide whether this retracement is a retracement of 5702-4720 or is a retracement of higher degree 5740-4720.

Till now this B seems to have done its B(a)=5110-5007=103 and B(b) seems to have been in play throughout today. Whether this B(b) is doing a DZZ or a simple abc is not clear as yet but as soon as it gets over, B (c) is likely to bring it below 4950.

More than this,I am not able to say--- so keeping my fingers crossed as far as the form of this B is concerned.

Raghu