Friday, October 12, 2012

Friday 10/12/12 Market Update

There is no change to the long term view since the last update.  The market has pulled back over the past few weeks, but the uptrend is still intact on a daily chart.

Until now, a flat for wave (4) seemed like the best choice and for good reason given the large retracement of the first leg down of (4) (wave W above).  With support breaking today however, there appears to be more than an impulse wave down developing since the high last week.  So the picture is more bearish today but waves W and X, as individual units or combined, still look highly corrective.  Considering this and also the longer term count since June that suggests an incomplete impulse wave higher is underway brings about the double zigzag wave (4) count above.

There was a change to the impulsive count of [a] but it looks clearly complete now.  The most simple view for Y is a complete wave [b] as shown with [c] underway.  But [b] can be a sideways correction still underway.

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