It seemed clear yesterday in Tuesday's update that the market was completing an upward impulse given the proportionality between the two impulse waves above and the well greater than 61.8% retracement of the impulse lower last week. But given the large pullback over the past two days, the best count is now the one in Monday's update. The rally since Thursday best resembles a zigzag.
Given short and intermediate term action, it appears that prices will move under the low seen this month before August and September resistance is tested again. In the short term, an impulse lower followed by a zigzag bounce is bearish. A continuing sideways correction is possible, however the longer term picture still suggests an impulse lower unfolding since May 2011. For proportionality reasons, wave (4) looks complete.
The March 2009 low should be tested in the future.
Note:
The update tomorrow will be very late.
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