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Thursday, June 6, 2013

Thursday, 6/6/13 update

The idea for a "c" wave ending diagonal in a zig-zag correction off the May 22 highs is still alive, and that "c' wave may have seen it's conclusion at today's lows.  The bounce will be interesting, it's either just that - a bounce - which will be followed by more corrective activity or it's the start of a new leg in the bull market.  There is a way to count the action up from the mid-November lows as having only waves 1 through 3 complete with the recent selling being wave 4, which would dictate a 5th wave yet to occur.  Further, in that count the 2nd wave is a flat, so a zig-zag for the 4th wave would fit the requirements of EW.  Also, FWIW, the 2nd wave (Dec 12 - Dec 28) was 12 trading days, this correction marked it's 12th trading day today.

Prices today rebounded right at a trend line connecting the late December lows with the mid April low, narrowly avoiding a sell signal on my Intermediate Term trend indicator (in the "Market Trends" column to the right - the Daily is the IT trend indicator).  Fascinating.

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