Thursday, December 29, 2011

5th Wave in Progress?

The market bounced as I expected on my post yesterday and I am inclined to think this is the beginning of the 5th Wave, although this has to be confirmed with a strong lift off wave and break the 200 day MA area for good. Until then, there is still less likely possibility of this being a B wave of a correction. Some posters asked me to clarify the ABC wave form so I am posting the basic wave counting structures. Corrections usually happen at the end of 5 waves within an impulse wave and more often than not they have an ABC or an Complex form look to them.

Today's close puts the market again above the 200 day MA and the Trend Average is at 1245 which are both bullish, so we'll see if the market can follow through tomorrow to the upside.

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