With the continuation higher Thursday, the count is now a zigzag higher since early October. This is an alternate count that was mentioned in the last update.
The longer term count above has also been changed. The termination of (3) and (4) have been moved with (5) added.
Note the shallowness and smallness of wave (B) above in relation to wave (A). This wave action suggests a zigzag is unfolding. Second waves are typically deeper, larger, and sharper than the correction above.
The upward rally underway is most likely a second wave bounce in relation to the sell-off since May 2011 that is characteristic of an impulse. As discussed above, the shorter term count in October works well with this idea.
Since March 2009, a zigzag higher is clearly the best count. This can still turn into a double zigzag however with wave 'x' complete and 'y' underway.
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