8 Oct 2014

The ST has turned south today even though markets rallied.. Volatility has created a disconnect with the indicators, but still should be followed.  This is the case so that there is continuity in our analysis, where eventually the markets and indicators will right itself and prove who is to be followed.

Currently I am in favour of the ABC count, and the reason this is so is because of blue (a-wave) as looking like a complete structure and where the new low set today was more of a zigzagging pattern that can be classified as corrective even though it is impulsive should be a (b-wave blue).  Finally the impulsive move up from todays low characteristics of a c-wave or 3rd wave, but again I am leaning towards a c-wave rather than a 3rd wave.  I can be proven wrong eventually..  Right now though my count makes sense.

MT: DOWN
ST: DOWN
PA: NA

NOTE: Yesterdays 2nd chart resembles this count we have drawn above, as well the 3rd chart yesterday still exists as a possibility but it would be an expanded flat triangle of sorts, which would send us back to new lows around the 1890 level.