Saturday, November 24, 2012

Friday 11/23/12 Market Update

There is no change to the count since the last update.  The market has rallied 65 points since the Friday 11/16 low.  Strength should continue as the 3rd wave of the impulse that began 11/16 completes.  A nearly complete double zigzag higher is a weaker count.

Since 1390 was exceeded, an impulse down following the second high in October is the best bearish count (alternate count 2) but the sub-waves required make this count a poor option.  Exceeding the 1435 resistance area will essentially invalidate this count.

The incomplete upward ending diagonal wave c still looks like the best option.  The first alternate count is not bad either but looks a bit doubtful given how far the market has come and the momentum loss in the market over the past few years.

The bigger picture since March 2009 still looks very corrective.  The large sideways grand supercycle wave [IV] suggested here still looks great, especially as all-time highs are approaching.

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