An updated wave count is attached to this post, [NOTE: all wave numbering is at the minor level, unless otherwise stated] and as you will see, places wave (5) at the market low on 10/4/11, relegating most of this past August and September to an minute a-b-c correction which made up wave 4 and the subsequent 5 wave structure which completed wave (5) at Minor degree and also ➀ of Intermediate degree. The following corrective trend as seen, beginning after 10/4/11, I think that this correction is taking either 5-3-5 pattern or a 3-3-5 corrective pattern as I have mapped out below, with our current position in the beginning of the Minute 3 wave of that last 5 wave structure, the entirety of which began on 11/28/11. I think this correction will terminate at or about $12,733 in the DJIA, and that the peak of the correction will come at or before 1/17/12. It looks like a truncated 5th wave will have to apply in order to finish this last c-wave without overshooting the top of intermediate wave ➀.
At this point, the DJIA should complete intermediate wave ➁ and turn south with what should be a less complex wave structure to begin the intermediate ➂ wave. This will bring the DJIA down to at least $9,000, though my final projection on paper for this next leg down ends at $7,738.
All in all, it looks as though this correction will last, at most until mid January (17th) of this coming year, at which point the market will pick up a strong negative current and dive below the previous market bottom of 10/4/11.
All the best,
-W
