Saturday, October 20, 2012

Friday 10/19/12 Market Update

The market took a large loss Friday and this brings some change to the wave (4) count that was previously believed to be complete.  The alternate count from the last update is now the primary count.  But in the longer term, there is no change to the view that the market is still in an uptrend with new recovery highs expected soon.

The waves since the last recovery high in September strongly suggest a correction lower is taking place.  Friday was a very negative day, but the low reached earlier this month still has not been reached.  While this is expected, a solid break of support should not occur.

An impulse wave down appears to be forming.  Some follow through Monday for its completion makes sense.

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