The bulls are back in charge and while we have been approaching the targets I established last week; the actions of these past 2 months caused me to revisit my Elliott wave count. I revisited a suggestion I had made back in February and after much deliberation throughout the day decided that this was the way to go.

The use of Elliott Waves in Technical analysis is never so much as predictive as it is to rule out some of the many scenarios that the market presents each and every trader. My review this week led me to eliminate a some of the earlier possibilities and reconsider the outcome. Interestingly the changes I made are not changing the immediate EW count but rather the larger degree count and I believe it now offers a stronger case to be the correct one.

Since some of the changes I made were so drastic, I documented every step of the way in my video this week.

Dim lights

Do not read further if you have not watch the video yet.

Few in the Elliott Wave community have adopted this new count. The hardest bears were originally considering the dive to 666 did not have the required 5 waves down, but the rally since then proved them wrong forcing them to rule out a wave 4 from 666. The strength of the rally and the difficult to figure out count between July 2009 and April 2010 hid the fact that a true Corrective up trending ABC was under way. I expect that should we overtake 1370 this week that the EW community will rally behind this idea. Additionally, as people, we all wonder how the market can do so well when the Dollar is so weak; the oil so high; the unemployment still so high; Europe ,and the USA, let's admit it, plagued by deficit and foreign debt.

We all realize the market is due for a correction, but the bulls have been relentless ignoring the dismal fundamental of the world economies. It is going to take a bit longer before the bottom of the bag gives up and the bulls finally decide to take profit and the world takes notice of the extravagance of the moment.

I am not going to get ahead of myself now and I will wait and be ready for the 3rd wave dow to confirm in a few months.