Tuesday, January 3, 2012

Tuesday 1/3/12 Market Update

There is no change to the count since the last update; in today's strong move upwards, the market likely traced out a "3rd of a 3rd" wave higher.

The primary count is an impulse higher unfolding that began 2 weeks ago. A correction higher unfolding since October is very likely for the same reasons discussed here multiple times.

In the intermediate term, the last recovery high should prove to be formidable resistance given the corrective appearance of the waves since October. A bearish impulse down unfolding since the last recovery high is possible but not likely given the size of the rally since October however. If prices continue to approach or reach new recovery highs, as the short term count suggests, it will be very likely that a sideways correction since July is underway with the rally since March 2009 continuing.

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