The micro count I was following failed with today's sell off earlier in the day. Still, the move from the most recent high of 2064 is an ABC move due to the overlapping waves. So this move could end up being a W2 correction given the impulse and then the zig zag. The market closed right below the Trend Average and clearly lost is 50 DMA. So if there is a bullish W3 coming, we should see bullish action as soon as tomorrow. Should the market fail to rally and go back down to today's low, then the count could turn into a nested bearish 1-2 but at this point I doubt it.
The cause for the sell off was mainly the unexpected fall in the durables report and disappointing earnings earnings by CAT and in line reports at MSFT. However, Apple just announced and they exceeded the most optimistic expectations, so tomorrow we should see signs if the bulls are really going to rally to new highs. I am still holding to my oil, so maybe they'll start rallying too.
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Short Term Trend = Bullish trend being challenged
Medium Term Trend = Bearish trend being challenged
Long Term Trend = Bullish
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