Friday, December 16, 2011

Friday 12/16/11 Market Update

With the exception of moving the labels of wave [ii], the count remains unchanged since yesterday's update.

There was an important wave crossing today with the first swing low seen this week. The completion of a "3rd of a 3rd" wave of an impulse count lower, beginning 12/7, is now a small probability if it unfolded this week. This was the most likely bearish option going into today. Bullish options are still preferred in a daily and weekly time frame given the waves. The technical position of the market is also suggesting more bullish action than bearish.

In the longer term, an upward corrective wave is very likely underway since early October. Since rally underway appears to be destined to pass the October high as discussed earlier this week, the count calls for an unfolding double zigzag since March 2009 whose wave x is underway with [B] likely approaching recovery highs in the next few weeks or months in the form of a double zigzag.

The long term view is still available here.

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