Wednesday, November 13, 2013

Wednesday 11/13/13 Market Update

The market broke to a new all-time high today as predicted would eventually happen.  The primary wave count calling for sideways wave (4) of [5] underway remains the favored option with all other possibilities weak and growing weaker day by day.  The problem with these alternate wave counts have been discussed in previous updates such as the last update.

Taken in isolation, the waves higher since 11/7 can be viewed as a developing impulse.  But in the longer-term, this does not fit well into any wave count (except the alternates).

Another problem with a significant bottom on 11/7 is the action of (a) above.  This must be an impulse wave if an impulse higher since 11/7 is unfolding, but it counts most naturally as a double zigzag (which fits perfectly with the primary wave count).

So the expectation is a short-term reversal bringing price back into the 1740s.  In the longer-term, the chances of eventual all-time highs are extremely high.  Wave (4) looks like a flat about 50% complete with the next best choice being a double. Yellen is speaking tomorrow morning and this might be the catalyst for a sell-off.

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