Saturday, August 10, 2013

Friday 8/9/13 Market Update

In the last update it was stated that the "1690s-lower 1700s" should prove to be the maximum level reached in a rebound following the Wednesday low.  After obtaining exactly this level, prices pulled back to nearly reach a new short term low.  There may now be a complete zigzag lower since the Monday high, but the truncation of the 'c' wave is not a common feature.

A zigzag lower last week also does not make a great deal of sense in the longer term.  An impulse higher since the June low looks complete and an ensuing correction this small and shallow seems unexplainable on the scale above and on a daily chart.  If there is a new all-time-high coming, the count will likely change to an incomplete wave 5, a count not desirable because of the complexity of its subwaves.

On a long-term chart, a sizable pull-back seems to be in order if either the primary or (best) alternate count is correct.  This scenario works very well with the wave action in the shorter terms above.

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