Wednesday, August 28, 2013

Wednesday 8/28/13 Market Update

While the short-term wave count in the last update is not quite correct, the market did sell-off as expected.  The rally higher since Thursday last week looked more and more corrective as prices climbed then retraced and overlapped the rally action.

There are three solid ways to describe action lower since the last all-time high.  They are a two impulses lower within a larger impulse, two impulses lower for a complete zigzag, or a double zigzag with its last 'b' or 'c' wave underway.  The last two corrective options look good enough to make the alternate wave [4] count a good option.  If the market takes out or tests today's low tomorrow, the complete zigzag option will be thrown out but the chart above may have a very bullish appearance in part due to the shallowness of the bounce today in relation to the Monday-Tuesday impulse lower.  It would make the double zigzag option stand out for the time being, but of course prices can continue falling.

Alternate waves [2] and [4] are becoming more and more proportional as prices continue to fall, but alternate wave [4] still looks incomplete on this scale.

blog comments powered by Disqus