Saturday, September 21, 2013

Friday 9/20/13 Market Update

The Friday sell-off prompted some change to the wave count presented in the last update.  It is debatable whether the primary count (in colored labels), "or" count, or alternate' count are correct, but there is a good chance that one of these is unfolding.

The rally since 8/30 can be labeled as a complete impulse or double zigzag.  The sell-off Thursday-Friday is now very large in relation to all corrective waves in the structure with the exception of [ii] above.  Since these corrective waves do not pair together in any meaningful way (e.g. they cannot be a 2nd and 4th wave pair because the structure does not allow it), a wave higher since 8/30 looks complete.

In the short term, the wave lower Friday looks incomplete as an impulse wave in its own right.  Following the discussion above, the action since the Thursday should be part of a larger downward structure no matter which wave count is correct.

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