Saturday, April 6, 2013

Friday 4/5/13 Market Update

Since the last update, the count has changed back to the bullish option used earlier in the week and in the months before it.  This change occurred because because of the rally action into the close Friday.

There is a count for a flat+zigzag wave 2 double and it is actually not a bad one.  2 may be incomplete, but it is already quite wide in relation to 1.  Quick, definitive selling this week seemed to confirm the ending diagonal wave count suggested earlier in the week, but the rebound following Friday's low crossed waves and retraced well over 61.8% of the gap drop.  The decline following the last recovery high now looks quite a bit like a 3-wave correction in the chart above.

Wave [c] of 2 looks terrible because its corrective waves are so out of proportion, but because the larger structure since the last recovery high has a corrective nature and the Friday bounce is nearly impossible to count as complete, the broken guidelines of this counter-trend wave [c] make it not out of place with the primary count.

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