Tuesday, January 10, 2012

Tuesday 1/10/12 Market Update

There is no change to the count from yesterday's update. Today there was likely a "3rd of a 3rd" wave higher just like the count had been anticipating.

Today's trading low can be taken out, but action should generally be 2-sided, not just down, for the count to remain intact while a downward correction completes.

If the impulse count is correct since the December low, this wave higher should continue for several weeks more. A zigzag in in this position is the next best way to describe price action with perhaps a sideways correction underway since the October high.

Looking at a longer term picture, the October rally is a clear corrective wave higher. The preferred count is clearly an upward correction since the October low. A double zigzag as described above is the most simple way to describe it.

Given the large retracement of the decline following the 2011 highs, the uptrend since March 2009 is still likely underway.

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