An impulse higher since the 10/4/11 low still appears to be unfolding where new all-time highs in the months ahead are very likely.
So far there are only 3 waves higher from the February low. This wave can be the first wave of an ending diagonal, a zigzag, or an impulse wave higher developing. A more complex option is a double zigzag developing but nearly complete. The important thing to note is that all options point to a continuation of the bull market in the months ahead.
An ending diagonal higher is possible, but this is not a pattern typically seen. As discussed in the last update, a zigzag higher (or the more complex double zigzag option) works best with the technical picture of the market; the market would need to put on quite a demonstration of strength for the next month if an impulse higher is underway and not even half-way complete to regain the momentum that has been lost during the last few weeks. The catalyst of the jobs report on Friday was a chance at regaining some momentum higher, but instead the market put in its 3rd consecutive indecisive trading day in a row with price again closing nearly unchanged.
In the short-term, no matter the wave count, the market correction looks incomplete since the last all-time high on Friday. The reason is the low, sideways action that is the rebound from the day's low. A weaker option is the complex flat+zigzag double since the Tuesday high.
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