Tuesday, January 17, 2012

Tuesday 1/17/12 Market Update

There is no change to the count from Friday's update. It was expected for the market to move higher and above last week's resistance as it did today.

Because the rally following Friday's low is clearly 3 waves, an ending diagonal or impulse wave since that time may be underway. If it is an ending diagonal wave [v] as illustrated above, the pullback today may not be complete.

A sell-off should begin soon, but first the impulse wave higher that began at December's low must complete. The count for this wave above is not desirable, but appears to be the most probable. A complete impulse wave is not a high probability at this time given the short term action today and Friday.

The longer term view was expressed in detail in the last update. A sell-off should begin soon, but is likely only a correction within the larger uptrend since March 2009.

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