The wave action the past few weeks has been interesting. The count suggested in the last update has not changed however; the market appears to be drawing out impulse waves to the downside with a significant top having occurred May 2011.
The market will likely not dive to the downside soon, but the down tend seen over the past few weeks should remain intact. Retracement guidelines for second waves have been broken, but the October rally is highly corrective as an already complex double zigzag. The zigzag wave (Y) marked above looks like a clear zigzag given C's impulsive structure; so a downward flat beginning at A of (Y) is not a good option. There are no good sideways corrective options to relabel [2] as a larger double zigzag.
If the count is wrong with [2] actually a double zigzag still underway, look for a continuation of wave [B] of x for a double zigzag underway since May 2009.
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