Wednesday 1/8/13 Market Update

In the last update, I said the next post would be the weekend of the 17th-19th.  Because I have the time, here is a quick update.

The wave action lower since the last all-time high on 12/31/13 now looks corrective, best resembling a zigzag with a triangle 'b' wave.  The bounce higher from the 1/6/14 low looks like a double zigzag underway with 'w' complete at the morning high today and 'x' wave probably complete at today's afternoon low.  Even is 'x' is not complete, the structure looks bullish in the short term with a break of ~1840 resistance likely.

There should be a double zigzag or flat, or something more complex, unfolding from the 12/31/13 high.  This corrective action should prove to be a 4th wave within an impulse higher developing from the June 2013 low or October 2011 low.  It is still small compared to the 2nd wave counterparts of the impulse options above, so it should continue until it is proportional to one of those waves.

Note:
I will be on vacation from the 9th-15th.  The next update will be the weekend of the 17th-19th.