The market declined today but on low volume. There appears to have been a zigzag correction down completing today but it is not clear which wave was corrected. Marked is a wave ii zigzag correcting wave i of (v) of [v]. This is an educated guess however. The correction may have been a different wave such as ii of (iii). Since the retracement was deep, it appears to have been a second wave.
Just after the close, there was a strong rally on the E-mini S&P 500 Futures which confirms the correction suspicion. Notice also that wave [C] was weaker than [A] but shows time and distance proportionality to [A]. These are characteristics of zigzags.
But how much longer can this rally continue?
Notice the market found support at the lower 61.8% daily "Kennedy line" as discussed in the previous post. This was also the point in which [C] was 61.8% of [A].
Problems:
The count is just not clear over the past few weeks!
Alternatives:
Not a zigzag down completing today, but a 1-2, 1-2 count setup with a 3rd of a 3rd down tomorrow. Not likely considering the strength at the close.
The zigzag today was correcting something else.
An ending diagonal (v) wave may be forming but i of (v) needs to be labeled as a zigzag pattern.
This is now wave C, A and B have completed.
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