A new option to describe the short term action has been added above. There can still be another burst higher tomorrow morning, but the market should remain range bound into next week. With the short term action still unclear, there is still essentially no change to the count since yesterday's update.
Considering the short term waves, the market still appears to be completing an up trend that began late November. There is also a substantial overlap of the 3-wave decline from late October which is bullish. All this suggests October's high should be exceeded for a zigzag higher since November and double zigzag higher since early October.
Anticipating what should happen next based on all shorter term action, the May or August highs should be tested as the uptrend since March 2009 continues. The reason for this is the market price already exceeding the substantial 61.8% retracement level of the May 2011-October 2011 decline with an even higher retracement still expected. Wave action is bullish, but the best alternate is still a complete single zigzag since March 2009 with new downtrend underway since May 2011.
Note:
As stated yesterday, there will be no update Thursday.
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