The XAO has taken almost exactly 12 months to break (only just) the intermediate term high set in April 2010. This is good news and casts some positive light on the index for the short/medium term even though the high was short lived.
In the last post, there was a view that the index would be correcting in the short term down to support - at around the 4900 level. This has taken place and now remains to be seen if the 3 wave declined finishes the 'X' wave or will a more complex correction unfold - perhaps a triangle?
With the break of the intermediate high, a wave '2' alternate count is now invalidated - this now helps us focus on the primary count as described here.