Tuesday 8/28/12 Market Update

There is no change to the count since the last update.  If the support of the marked wave [iv] of 3 above and low last week is taken out, the choppiness since June should be a corrective pattern that will be mostly retraced before a new recovery high is seen again.  If the primary count above is correct however, for the next several weeks the market will be tracing out a sideways correction (wave 4).

Given the Friday to Monday bounce, in the short term there is now a corrective pattern lower since the wave 3 high.  Short term action is difficult to predict at this point, but action within the chart's range above is expected.