The impulse count down illustrated above is a reformulated version of the count in the last update. The weakness seen Friday forced the change. This new count still makes good sense and works well on all scales. It suggests a bit more downward action before (Y) of [5] begins.
The massive retracement of [4] suggests there will be an eventual new high, especially since the early November resistance was broken definitively. While it is true that the waves higher since November are clearly corrective, this has been the expectation of this wave; the count is still a wave c ending diagonal underway.
The projection is wave c completion around 1500 but only 1475 is possible. This top should be seen a few months from now and will mark the end of the rally that began March 2009. The count works with all waves in the fractal very well with the completion expected very near the major resistance of the last all time high.
The long term view is outlined here in a post from May 2011 and is still as valid as it was the day it was published. The view is still that supercycle wave (b) or (x) is underway within sideways grand supercycle wave [IV].
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