Stocks moved higher Friday in the manner suggested in Thursday's update; wave a of (y) completed with limited upside in the morning before consolidation ensued. Wave c of (y) may be underway if b is complete. A gap down below 1074 tomorrow should be the final leg of wave b, not the beginning of [iii].
Tomorrow wave [ii] should complete along with zigzag wave (y) (unless a more rare triple zigzag is unfolding). The cluster of targets near 1090 is a good place for wave [ii] to complete.
A likely count is above. Prices are barely hanging onto a trend line in an overbought market that is clearly losing momentum.
There have been rallies into the close the past several days. Volume has also been waning the entire rally. It seems that there is more of an absence of selling, not an increase in buying. This is a sign of a bear market rally.
The larger view above has not changed.
Errata
There was a mistake made in one of Thursday's charts that had the wrong blue Fibonacci retracement levels. This has been corrected in the first chart above.
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