Saturday, January 19, 2013

Friday 1/18/13 Market Update

There is no change to the count since the last update.  The ending diagonal c count is looking strong and much better than the alternate above.  After it terminates, most or all of the advance since March 2009 should be retraced in the coming years.

The structure higher since November is clearly more corrective looking than not.  Considering only this and fact that there was a new recovery high this week, at least the November low should eventually be retested.  The impulsive alternate count above is a weak option.

The short term count suggests [v] will be shorter than [iii] because [iii] is shorter than [i].  In other words, [v] can move higher by at most a handful of points if the short term count is correct.  The market can wander higher for days more if one of the alternates in the chart above is correct.  But the market should be very close to a significant top if it has not already reached it.

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