11/21/11

The market went down today.

The count I posted yesterday is still viable, provided that the market does not make a low below 1183 cash-equivalent before a reasonably significant correction.  If you think 1292 - which is suddenly a long way up - was Intermediate (2) rather than Minor 2, simply bump up everything on this chart one degree.

From today's low of 1183.16, logical correction points (assuming the wave to be corrected is from 1266) are 1214-15 (.382), 1224-25 (.500), and 1234 (.618).  If the wave to be corrected is from 1277, these values are 1218-19, 1229-30, and 1240-41. 

The major disadvantage to this count is that the low was made on lower RSI and MACD, which suggests that the final descent might be yet to come.  It is entirely possible that this is a wave [5] of 9 or something of that sort.