Tuesday, March 13, 2012

Tuesday 3/13/12 Market Update

With the strong move today, there is no change to the count since yesterday's update. This move is in line with the view that impulsive action higher should continue.

The probability of an incomplete wave (2) flat underway became a lower probability now that prices broke through the origination point of (1).

There are still various counts that can describe the action since November, but they all suggest impulse wave higher unfolding in a bullish market. It is possible that wave c is terminating in a matter of days or weeks. On the other hand, the rally can continue for months more to prices beyond the 1500s or 1600s.

For zigzags, there are two good guidelines to follow when trying to determine the most likely count: wave c should not closely resemble wave a, and wave c should be well proportioned to wave a. This still leaves many options, but can help reduce the probability of wave counts that follow these guidelines less well than others.

blog comments powered by Disqus