Elliott Wave update on Kuwait Index 6 May 2010

On 8th March I had privately circulated an Elliott Wave update on Kuwait index. This is produced here just to demonstrate how one has to change his tune when the market shows it has a different mindset. Today, 6th May, the index has straddled an important prior top which I had labeled as wave 1. As you know, wave 4 can never overlap the top of wave 1. If it does, then we have to adjust our counts immediately. I have done this in the second chart. There is no change in the view that we will see a significant rally once the 2nd wave is completed.  The purpose of today’s update is to alert you that the 2nd wave is still not over and it is likely to develop some more complexity. This could produce a short term recovery, but be prepared to wait for some more time for the mega bull run to materialize.