Thursday, January 19, 2012

Thursday 1/19/12 Market Update

The rally today brings about a new count since the December low as shown above. The alternate count above was the primary count in yesterday's update.

Considering momentum but also the size of (v) of [iii] in relation to wave (i) of [iii], the best count is an extending 5th wave as shown above, not a symmetrical impulse (the alternate), in my opinion. The expectation is for the wave [iv] correction to begin tomorrow

In the longer term, the count is now a wave x correction underway since either the May or July high. That puts wave [B] underway now as a double zigzag following [A].

The reason for the change is due to the now massive retracement of the wave down beginning May or July. With a retracement greater than 78.6%, a second wave bounce following the October low is a very low probability. There is a better chance a zigzag down since May or July is underway, but this is no longer a good choice.

An estimation for the termination of [B] is 1350.

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