Sunday, June 17, 2012

Friday 6/15/12 Market Update

There is no change to the count since the last update.  In the long term, an impulse wave that began in November 2011 is likely complete.  The shorter term waves suggest corrective waves followed this impulse wave's completion, so the primary view is that a zigzag that began March 2009 is incomplete.  There are some more complex options to the count since March 2009, but a single zigzag is the simplest view.

A triple zigzag is not a common pattern, but this best describes the action down following [1], even when considering the context that this wave is in.  An impulse or single zigzag in that position is very difficult to imagine.  A double lower is possible since the last recovery high, but this is again a stretch of the imagination.

As long as there is not a zigzag pattern higher unfolding since the low above, new recovery highs should again eventually be reached.  Breaking the discussed 1335 resistance area area Friday is a good start in the longer term bullish direction.

Waves are clearly bullish in the shorter term; every pullback is preceding an impulse wave.

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