Wednesday, December 21, 2011

Wednesday 12/21/11 Market Update

There is no change to the count from yesterday's update. Following wave [i] with extended 1st, wave [ii] is likely complete as a sideways flat. (i) of [iii] appears to be underway as a clear impulse wave that will complete tomorrow.

The core or "3rd of 3rd" wave of C should be coming within the next few weeks. There are usually low volume conditions around this time of year, so the market may grind higher with few dramatic moves as a new uptrend develops in the shorter term.

The choppy series of waves lower this month is a good reason to continue to expect at least the December highs being reached. Similarly, the 3-wave structure of the October-November decline suggests the October high will be reached.

Given the clear 3-wave structure of the October rally, an upward correction appears to be still underway since early October. A double zigzag makes a good deal of sense and is the most simple option, especially as described here. Since then the shorter term suggests the October high will be surpassed and there is already a large retracement to the post-May decline, a sideways correction appears to be underway since May 2011.

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