Wednesday, January 25, 2012

Wednesday 1/25/12 Market Update

Wave [iv] may have been a double as described above. The count from yesterday's update has been changed to show this, but otherwise there is no change.

An impulse wave higher following today's low is fairly clear. It appears to be nearly or fully complete unless [v] began yesterday. Because it would be a bit unusual for [v] to subdivide to this extent and the retracement of its first wave yesterday is large, an impulse higher beginning yesterday is listed as an alternate above.

It is possible that the impulse higher that began last month had its "3rd of a 3rd wave" just last week. This suggests the rally underway will continue for weeks or months more. This wave would lose proportionality with the waves around it if this were to occur, so the count is only an alternate. The wave (W) rally that began in October is clearly corrective, so a more impulsive rally underway since November is not likely.

A downward correction is still likely underway since May or July. But the rally since March 2009 is still very likely incomplete.

blog comments powered by Disqus