Monday, November 28, 2011

Monday 12/28/11 Market Update

The count remains unchanged since the last update. Wave [iv] may be complete. If not, a minor high above today's rally is expected for a zigzag wave [iv] where (v) bottomed Friday.

Given the form of the October rally, it appears that an upward correction is underway even if the count is not correct. If the rally that began today continues noticeably beyond 1200, look for a 2nd wave bounce to be underway, not a 4th.

The market is coming off of an overbought condition, but a zigzag lower appears to have unfolded following the May 2011 high. This and the clear zigzag structure March 2009-May 2011 suggests bearish waves ahead.

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