Wednesday, January 22, 2014

Wednesday 1/22/14 Market Update

The wave action lower since the last all-time high on 1/15/14 now looks corrective due to the major retracements of the swings lower made since that time.  At the same time, the Tuesday-Wednesday rally looks like a diagonal or a double zigzag.  If there was a significant top reached 1/15/14, an impulse down and flat correction would have unfolded, but this is not the preferred view due to the big retracement made on Tuesday.

There is likely not a sideways correction still underway since 12/31/13 because of the complexity involved.  If there is, alt''' is correct and the 'y' wave since 1/15/14 must be a downward flat or triangle underway.  This seems to be the only choice due to the structure of the waves since 12/31/13.

In the longer term, the structure of [5] is debatable, but an impulse that began in late 2011 is likely winding down.  The best two options for [5] are the counts in color and the "or" option.

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