I want to point out though, this is a dangerous area where you are doing nothing but gambling on a direction if you play it.
I do though think that we will test the trendline one more time. That's going to be the make or break in the short term for this market. If it holds, there's a very high probability that all the dip buyers load in and we are going to new highs. (for what I think will be the last time we see new 52 week highs in a very long time) If it doesn't hold, we will have to re-evaluate longer term Elliot Wave counts and determine what is highest probability path.
I've updated the chart i've had running for the last couple weeks;
The market appeared weaker than it really was today. We had HPQ weighing on the Industrials, but the S&P 500 was never down more than 7 or 8 points, I think it touched down 9 points for a millisecond as we BARELY peaked below the trendline. The financials of all things seem to hold up the fort today. JP Morgan up 2%, Wells Fargo up 3%, US Bank up 2%, Bank of America and Citigroup did their standard barely move as they just slosh around in Zombie nobody will admit they are insolvent land.
Going forward here, I suspect we will have a small bounce and drag in some BTDer's, then head back to the trendline for the ultimate test. At this time, I expect it to hold and for new highs to come over the next couple months. But really, the rest of this week is sort of a wildcard, we could go either way with a lot of economic data deteriorating.
GL
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