The primary wave count has been changed to an alternate wave count from the last update. The reason is that the waves lower since 1/15/14 now look considerably more corrective than impulsive.
If an impulse lower has unfolded or is unfolding, there are a number of broken guidelines within this wave. For example alternate' above has a small, momentum losing core "3rd of a 3rd" wave and a very large but shallow, sideways wave [ii]. If an impulse down is complete since 1/15/14, there are serious proportionality problems with its corrective waves. On the other hand a double zigzag down as described above has no problems whatsoever.
The rally ensuing from today's low looks like more than 5 waves for an impulse. This suggests a sideways correction since the Monday low is incomplete or the market is drawing out a larger upward impulse that began today. Because of proportionality, a sideways correction underway for several more days, as that option seems to call for, does not work well with the primary wave count. The Tuesday-Wednesday drop surprisingly works best as an impulse wave lower, not a zigzag pattern. Therefore it is most likely that [4] is complete to the downside.
Note: Friday an hour before the open is the monthly jobs report. I would expect a positive reaction from this as the market seems poised to have some large up-days in the very near future.
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