Wednesday 1/26/12 Market Update

There is no change to the count from yesterday's update. The impulse wave that began yesterday now looks complete.


If the market does continue higher, continuing the impulse wave that began at the December low, the alternate count above will be the preferred one. This is not a bad option, but not the most straightforward or natural one. As mentioned yesterday, a lower probability count is the second alternate above which suggests a multi-week or multi-month rally is still ahead.


There is no change to the longer term count. A downward flat underway since the 2011 highs is the greatest probability. Although eventually expected, the March 2009 low will likely not be tested soon.