Sunday, March 11, 2012

Friday 3/9/12 Market Update

There has been some revision to the count in the last update due to the continuation higher Friday. The good alternate shown in the last update is now the primary count. This simplifies the view from March 2009, but the triangle above is not as symmetric as desired.

The longer term view has not changed; the rally since March 2009 is still corrective and should still approach all-time highs if not exceed them.

There are a number of ways to describe the impulsive rally since November. The best guideline to keep in mind at this stage is that the two impulsive legs of a zigzag should not resemble each other. In other words, wave a should not resemble the wave c underway.

It is possible that the correction lower that began at the last recovery high is still incomplete as a flat. But the good impulsive count for the rally that began last week Tuesday suggests the correction is over.

In the short term, the market can pull back to a variety of levels as the correction following Friday's high is expected to continue tomorrow.

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