Sunday, September 29, 2013

Friday 9/27/13 Market Update

The alternate' wave count in the last update is now the primary wave count with the last primary count taking its place.  The change was the result of the short-term action seen this week.

While the flat unfolding in the alternate' count is a good option and the low reached Friday looks like it will likely be broken in the coming days, the shallow and sideways attributes of the action last week are not the usual characteristics of 2nd waves.  In addition, a complete triangle B wave within (2) of [5] looks like a very solid option.  Triangles of course cannot be second waves.  These are the reasons for the change in the wave count, but keep in mind the difference in probability between the primary and alternate' are not significant.  A rebound to the Tuesday high is possible and this would erase the triangle option, perhaps giving a larger retracement of the preceding impulse wave in the process.  This bounce, if it occurs, should be wave 'c' of a flat as there are essentially no good options for a significant low reached on Friday.

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