Sunday, May 20, 2012

Friday 5/18/12 Market Update

There were some modifications to the count since Friday's update.  In a multi-month chart, the pullback this month is now quite deep and looks more like a second wave.  A new bear market underway is also possible considering the zigzag characteristics of the rally since March 2009.  There is still not good symmetry between the legs of this pattern however.

A zigzag lower since the high earlier this month works well with the shallow bounce occurring a few weeks ago.  The rally in March still works best as a 3-wave zigzag wave however.

An impulse down as illustrated above is likely complete.  Since a large zigzag down is possibly winding down, the wave action the next few days or weeks will help determine which count is the best.

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