Thursday, August 23, 2012

Market Timing Update (8/23/12)

[EOD] Stocks -
Primary tracking counts are the bullish blue and purple counts. Squiggle count suggests an ABC decline approaching its end.

[1245 pm] ES/SPX update -
ES shows a respectable zigzag decline from its high (Chart 1) and SPX has satisfied the minimum requirement for a zigzag decline (Chart 2)although the final small-degree 5th wave could extend. Subjectively tracking the blue [a] and purple wedge discussed in yesterday's EOD update (this chart).

[905am] ES update -
The decline after the initial claims number is again approaching potential trend line support. The current decline is a small degree 2nd/B wave based on the bullish count, and a C/3rd wave following an expanded flat rebound based on the bearish count.