Tuesday, December 27, 2011

Tuesday 12/27/11 Market Update

There is no change to the count from yesterday's update and earlier. The impulse wave that began last week appears to have completed with a downward correction now underway. This can be either (ii) of [iii] or [iv].

The market has entered an important resistance zone that may be broken in the coming weeks or perhaps later in 2012 after a consolidation period. A zigzag higher unfolding since the November low is expected even if a sideways correction is still underway since October.

An uptrend since early October appears to be underway but in a corrective fashion. Since there has been such a large retracement of the post-May 2011 decline, a continuation of the trend higher since March 2009 looks most probable but not by a wide margin.

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