Sunday, December 15, 2013

Friday 12/13/13 Market Update

There is no change to the primary wave count or alternate wave count options from the last update.  The primary wave count has a somewhat lesser chance of unfolding given the action seen on Friday however.

The shallow, sideways action of the market the last two trading days seems best suited as a 'b' wave, not a second wave.  So alternate''' now seems like a reasonable choice which would give a downward flat+zigzag double since the 10/30/13 high where the 1740s should hold price (for no overlap with the ~1730 September high).  Within the context of an alternate wave count, a double zigzag unfolding since the 12/9/13 high for a move below 1740 should also be considered.

Regardless of what is going on, the market should continue lower and break under the support area that it currently resides in.  There is a very strong probability of this occurring.  The clear Thursday high-Friday AM corrective move was an obvious short-term bearish indicator.  The additional test of the lows in the afternoon added additional bearish evidence to an already strong case.  The small waves suggest a double flat has completed to terminate an upward corrective move.  A bounce higher on Monday is possible, but it will not change the fact that an impulse lower and sideways correction have very likely developed.

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