Wednesday, December 22, 2010

Wednesday 12/22/10 Market Update

The market continued its upward climb today causing the impulsive alternate count from yesterday's update to become the primary count. As mentioned before, it is unfortunate that the rally has been very unclear and choppy. Since Thursday 12/16 however the count has been a completing wave [v] following wave [iv] of C so higher prices have not been unexpected; they were actually predicted.

There are a few options to describe the upside waves, but a completing impulse appears to be the best view. The "3rd of 3rd" wave labeled above makes sense from a breadth perspective, but its structure is quite awkward.

There should be 2-sided action tomorrow (Thursday 12/23) as a sideways wave (iv) continues.

A 5th wave is usually not as subdivided as its 3rd wave counterpart, so the above count with leading diagonal (i) of [v] makes sense when comparing the number of waves within [iii] and [v]. On a 60 minute chart, the difference in subdivision between waves [iii] and [v] is clear. An impulse since late November looks like a sound assessment.

The market is continuing to make new recovery highs which is not working against the larger count found here.

Note: There will be no updates from 12/23 through 12/28; I will be out of town.

blog comments powered by Disqus