Wednesday, June 26, 2013

Wednesday 6/26/13 Market Update

In the long term, it appears that (4) may be complete as it is sized well in relation to (2).

The alternate'' 2 count from the last update is now the primary count.  There is now little choice but to call the sell-off a double zigzag like the options above given the drop Monday because of the distance reached under the 1600 level and the zigzag nature of the decline since the high last week Tuesday.

Note that the "or" count is a very good option that is somewhat preferred at this time.  The reason for this is the sluggish rally off the Monday low that must have followed a Friday-Monday ending diagonal wave if a significant bottom was reached.  Also the [b] waves within the zigzag legs of (4) look better proportioned if (4) is not complete.

On the other hand, the rally higher since Monday is so far resembling a developing impulsive as the rally becomes more and more established while (4) has a good size relative to (2).  It may not be clear which option is the one actually occurring until sometime next week.  Keep in mind that the "or" count is valid if the rally since Monday is a zigzag or if it develops into an impulse.

blog comments powered by Disqus