Sunday, March 17, 2013

Friday 3/15/13 Market Update

The wave count after Thursday's action suggested the market had a chance to correct a complete impulse since 2/26/13.  This looked possible Friday morning as prices dropped to overlap the Tuesday high, but the rebound that ensued essentially invalidated the short-term bearish option as a new recovery high was nearly seen.  It also made the morning decline best resemble a 3-wave correction.

The best count is a set of first and second waves higher since 2/26.  Even though there are a number of different ways to label this month's advance, the primary count above works well because the other options suggesting a complete impulse have proportionality issues.

An impulse higher since (D) looks possible on a daily chart, but the shorter term waves show this option is very weak.  The trend is still higher and there is no good count that suggests a top is imminent.

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