Saturday, June 15, 2013
MTU Weekend Ed. - Short Term Update (6/14/13)
The analysis in Tracking Update (6/7/13) and the three proposed scenarios continue to be applicable (Chart 1).
The decline from the May high to the June low counts best as a three wave structure.
As such, the blue wave (4) pullback remains the most likely at the moment. Wave B-up of (4)-down is in progress. Wave C-down of (4)-down should push SP500 towards 1550 in SP500, unless a sideways triangle develops.
If the market has topped as suggested by the red count, the initial sell-off is most likely a 3-3-3-3-3 leading diagonal triangle. The June low is likely the first small-degree three-wave drop.
this chart). However, as discussed before, the upside potential is limited in this case to the lower 1700s in SP500.