11.02.2011 -- About to fall apart?

So we got a counter rally today. Its very key what happens next. If this is a big wave 3 down, we will definitely instantly reverse what happened today and proceed to tank and take out the 100, the bottom of the channel and the 50, and all very soon.

If we just slightly pullback tomorrow or continue higher or even sit around and not do much, it will start to add evidence that this is just a B wave and theres still a final potential trip to near or slightly over 1300 remaining.

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Key Levels

Upside -- 1244, 1268-1273, and 1290-1300

Downside -- 1231, 1220-1215, 1192, then a big drop to 1097 and 1070

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SPX Daily;

We took out the 100 again to the upside but them rejected the mid-bollingers. Todays trading seemed forced to the upside. It didn't feel impulsive or like shorts covering. It felt weak, like it could fall apart at any time.

The MACD is just rolling over and the Stochs are now on a solid sell.

I think there's more downside coming. The question is just how powerful it is. Taking out the 50dma and getting back down to 1150 could still be a B wave.. so how powerful and fast the decline is will be key to assessing it. A B wave will take some time and have quite a few counter rallies like today and the selling just wont be as powerful. If this is part of a big C down then we should begin tanking again and take out the 50 within a couple days.

I added to my short position today. The futures are down and leaking, we shall see.

GL

CJ