Tuesday, October 2, 2012

Tuesday 10/2/12 Market Update

There is no change to the count since the last update; in the long term the trend is still higher with a possible impulse still underway but an upward ending diagonal count is a very good option.

The downward action looks like an incomplete downward wave regardless of it being a correction or an impulse wave.  The rally following last week's low looks like a clear double zigzag higher.  A sideways wave (4) zigzag+flat double is possible, but the flat is running which is a bit unusual and there is not great proportionality in the 4th wave pattern.  If the market makes a strong move higher, this will become the primary count however.

There is a downward wedge pattern since Monday, but the rally preceding this is clearly corrective looking.  A test of last week's low is expected.

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