Sunday, February 19, 2012

Friday 2/17/12 Market Update

The market is still moving higher as it is likely winding down an impulse that began in December. It appears that a sideways flat correction, perhaps wave (iv) of [iii], completed last week. Wave [iv] appears to be underway now as some sort of sideways correction.

The trend is still clearly higher since December, but there is also clear momentum loss. These observations work well with the count above.

Due to form the October rally (a clear zigzag wave higher), a sideways correction either terminated late last year or a zigzag higher is underway since November. Since a triangle appears to be the best option for an already terminated sideways correction (where it completed in November), and that pattern does not show a good degree of symmetry, the count above is still preferred.

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