Tuesday, June 18, 2013

Tuesday 6/18/13 Market Update

There is some change to the preferred wave counts since the last update.  The best two options (by a margin) are marked in color and in the white "or" labellings above.  They suggest very different outcomes in the short term.

If the colored count is correct, there will be a new all-time high soon as the market moves higher clearly and strongly whereas the "or" count suggests a pullback this week in a sideways correction unfolding since last week's 6/10 high.  This sideways correction seems best as a triangle with its (b) or (c) underway.  Tomorrow is a fed day, so expect the significant volatility that comes in the afternoon to add clues toward discovery of which count is favored.

Keep in mind that the sell-off following the last all-time high is extremely corrective looking as a complete double zigzag.  No matter what happens in the short term, an eventual retest of the all-time high is expected and a pattern higher to do that is very likely underway since the 6/6 low.  This pattern higher has been expected to be a corrective wave and so far, in many ways, this is exactly what it looks like.

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