Sunday, March 2, 2014

Friday 2/28/14 Market Update

Wave [4] still appears to be underway as a sideways correction with corrective wave (B) nearly complete.  [5] may be underway, but price should still approach 1825 before any meaningful advance resumes.

The primary wave count with ending diagonal C of (B) of [4] looks excellent.  The best alternate wave count on the scale above appears to be alternate'.  This option has a somewhat strange double flat congestion area with other structural concerns and states (2) of [5] is underway.  It remains to be seen if the C of (2) pullback to complete (2) would be enough to recharge the market for another soaring advance for (3) like was seen in February.

Alternate'' has some structural concerns and retraced almost nothing, so it seems to be a bit of a stretch.  It also complicates the picture since February.  The action it calls for moving forward is basically the same as the primary wave count (one more new all-time high), so there is not much point in considering it.

The next all-time high, or near all-time high reached by the market should prove to be an excellent shorting opportunity.  This level could be achieved as soon as the open on Monday.  If [5] is underway, price should still reach at least 1825.  But far lower prices are most likely where [4] should be underway as a flat or triangle.

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