Wednesday, August 7, 2013

Wednesday 8/7/13 Market Update

The short term count has changed a bit since the last update, but the idea that wave 5 was winding down seemed to be a correct assessment given the sell-off over the last few days.  It looks like an impulse lower is complete with a small impulse higher ensuing that should be a part of a zigzag family pattern.  The upper 1690s-lower 1700s look like a maximum target for this zigzag family fave.

Even if a significant top has not been seen Monday, a large 4th wave should be underway that will retrace most of the now complete-looking impulse higher that began in June.

The long-term count has not changed.  Beginning in 2009, there seems to be good proportionality between two zigzag legs higher.  Even if an impulse higher is underway since November 2011, it is hard to deny the corrective-looking nature of the post-2009 rally.

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