Wednesday, October 2, 2013

Wednesday 10/2/13 Market Update

Due to the action today and the weakness in the futures at this hour, the primary count has changed since the last update.  It is now a completing wave [4] triangle with (C) underway as a double zigzag.

If it were not for the weakness in the futures market tonight, the primary and alternate' counts would have been about 50/50 options with perhaps some preference to the alternate' count.  Stocks need to rally very soon in order to turn the intermediate-term bullish, but the futures market is suggesting a lower open on Thursday.

A corrective nature of the sell-off since the last all-time high is apparent however.  It just seems that a double zigzag is not yet complete.  If the primary count is correct, (C) should reach the 1640s.  Keep in mind that because impulse [c] of W above was not heavily retraced, a more impulsive option lower is not a poor option and should be considered.

The last 3 days of action can work with an impulsive option if there is a burst higher.

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