Saturday, October 6, 2012

Friday 10/5/12 Market Update


There is no change to the count since the last update, but the alternate complete ending diagonal count is now a considerably smaller probability than before.


There was almost a new recovery high this week within the corrective-looking bounce higher that began at the late September swing low.  So a zigzag-family pattern count since the June wave [2] low is difficult to visualize and count, thus the ending diagonal counts are no longer as desirable as before.

Wave (4) looks like a flat or some other sideways pattern still developing.  A test of the wave A ow W low looks likely in the near future.


An impulse wave higher since Tuesday is possible, but the action higher preceding this (a series of choppy zigzag-like waves higher) makes this option a low probability.  There are still many acceptable counts for the action following the late September low however, so a relabeling of the B wave may happen next week.  A new recovery high would not necessarily invalidate the longer term incomplete wave (4) count.



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