Wednesday, April 2, 2014

Wednesday 4/2/14 Market Update

In the long-term, the options remain unchanged from the last update.

The market has broken out to new all-time highs, rather than pulling back at 1885, which is a signal that the long, wide correction lasting weeks has ended.  Because of this development and the complexity required for a correction to still be underway, alternate'' is not a strong option.

The very shallow correction seen since Feburary can be a second wave, but a sideways correction like this is not typical of second waves.  The market will need to put on an amazing show of strength over the next few weeks if a third wave is underway, particularity because the bull market is so mature.

The problems with the alternate counts above make the primary wave count stand out by a good margin.

There are many ways to describe the movement higher since 3/27, but the best symmetry to the move so far is as labeled above.

Note: There is a jobs report at 8:30am EST on Friday.  These create volatility and can be catalysts for large moves.

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