Thursday, December 29, 2011

Thursday 12/29/11 Market Update

The labellings for (ii) of [iii] lower have changed given the >61.8% retracement of that decline. Although it does resemble an impulse wave best, a (poor) 3-wave correction, a double zigzag, can be found as marked above.

The alternate proposed above is possible, but for reasons listed yesterday, it is not desired. In the longer term, nothing has changed the view that an upward double zigzag correction as labeled above is unfolding. The form of the October rally and clear 3-wave decline following strongly suggests an upward correction is underway since October.

In the longer term, a second wave correction since early October is possible, but the retracement of the prior sell-off suggests the bull market since March 2009 is still underway.

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