11.14.2011 -- Bouncin around..

We are still just bouncing around in that flag. I think we have another week or so left still to finish it. Volitility may appear to start to fall off heading into Thanksgiving, unless we break out of the flag before then.

Still have to assume this is a B wave flag and that we have a end of year rally heading at us.

------------------------

Key Levels

Upside -- 1265, 1272, 1290

Downside -- 1227-1235, 1202

-----------------------

SPX Daily;

As requested by a reader, I have labeled the current expected Elliott Wave count. This assumes our blue flag is a wave B with C remaining as a holiday rally, which will be followed by a big wave 3 down.

A close below 1225 would invalidate the theory tha this blue triangle is wave B. So a breech of that level would indicate B is going to cut deeper.

I've also included the old channel so you can see where we might go if we were to break south of 1225.

There's not a whole lot more too it at the moment. I suspect we spend some time in this triangle so that the following rally will last all the way through christmas and the new year. Either that or we break south and B cuts a bit deeper and eats up some more time before the rally starts.

GL

CJ