Sunday, March 30, 2014

Friday 3/28/14 Market Update

The market still appears to be drawing out an impulse wave higher since the 2011 low.  It should be at least a couple of months until completes.

There is clearly so far only a 3-wave advance higher since 2/5.  There is a very high probability of new all-time highs coming in the near future with the structure over the last month suggesting this will will be seen within the next few weeks.  A breakout is expected after a triangle X wave (primary) or flat X wave (alternate'') completes.  These are both good options with a more complex X wave underway also possible as a reasonable option.  The breakout will probably only be brief as a double zigzag higher since 2/5 seems to be developing.

An impulsive option is possible (alternate'), but its second wave correction seems a bit strange.  A complete double zigzag since 2/5 is also possible and perhaps better (alternate'' 3), but the 'b' waves between its zigzag legs seem out of proportion.  Even if this option is correct, there is still most likely a wave [4] sideways correction underway since the January high which is a bullish wave structure.

The bounce following either of the Thursday lows is best counted as a zigzag.  So if one of the upper resistance levels in the 1-minute chart above is tested, a deep pullback should ensue.  If prices move under the ~1835 support level this week, alternate'' 3 will become the best option.

blog comments powered by Disqus