Wednesday, February 26, 2014

Wednesday 2/26/14 Market Update

Wave [4] still appears to be underway given the corrective-looking nature of the rally higher since 2/5/14.  There is a high probability of the market making new all-time highs this year.

Wave (B) of [4] seems incomplete.  A complete double zigzag higher on the scale above seems like a good option (alternate'' 3), but upon closer inspection wave (c) of [b] looks nothing like an impulse wave.

Because of this 3-wave advance from 2/20 (looking very much like a double zigzag), the first thought is a sideways correction underway since the 2/19 high.  The primary wave count is a triangle wave B underway with [c] of B incomplete.  A flat wave B underway is also possible.  The next best sideways possibility is a flat+zigzag double (alternate'') perhaps complete.  This pattern saw such a small amount of overlap into A territory that a complete double seems questionable.  Also questionable is a complete wave B triangle wave (alternate'' 2).  It does not have great symmetry and its 'e' wave seems a bit large.

If the market rallies to a new all-time high from today's low without additional downside first, alternate''' will look like the best option (ending diagonal wave C underway from the 2/20 low).

While the wave count covering the past few weeks is not certain, the overall picture is very bullish with the wave higher since 2/5 very likely incomplete.

Errata: For some time the degree of waves within (5) of [3] on the daily chart were market wrong.  This has now been corrected.

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