The market continued higher today, but the rally since Thursday is difficult to view as an impulsive, healthy rally. The 61.8% retracement level of (i) has been surpassed, but the action since Thursday works well with the view presented in yesterday's update and earlier; that a significant top was reached 2/21/11, an impulse down unfolded, and an upward correction is underway.
The wave count is not entirely clear at this time, but a zigzag higher is expected following today's low.
Any additional upside tomorrow should be limited. Look for a downward reversal beginning soon.
If prices continue higher tomorrow and do not pull back, an impulse since late August may be incomplete. A downward 4th wave of this impulse may still be underway (leading to better proportionality between 4th and 2nd waves). If there is a 4th wave underway, look for a sideways correction.
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