Sunday, November 10, 2013

Thursday 11/8/13 Market Update

There are only minor changes to the short-term wave count since the last update.  There are several good options for short-term counts, but all suggest a zigzag-family wave or impulse wave higher following the Thursday low to at least the 1775 area.  The 3 waves higher since the Thursday low to nearly new highs is suggestive of a new all-time high coming.

The Thursday sell-off can be an impulse wave which could simplify the overall picture since the October high, but the waves within the rally suggest it is a double zigzag.  If it is indeed a double zigzag, then this means sideways action will continue.  This works well in the larger context as an incomplete correction is still the preferred view.

The 'alternate 2' count grows less likely as prices climb, but it remains a possibility if (B) of [4] is underway as a double zigzag (an option I did not see earlier).  The ending diagonal alternate count remains on the table as well, but like the 'alternate 2' wave count the "look" of the the pattern is questionable.  For example consider the fact that the two impulse legs of zigzags tend to balance one another by being equal in size.  Price is well above the August wave [3] high and the upper ending diagonal line, yet an impulse wave following the October low has not yet started.

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