Just a quick update tonight since there’s not much to add to yesterday’s comments. I spent a lot of time charting tonight, but have selected to share just one chart for the sake of illustrating the point. Below is the NYA, which suggests bears aren’t out of the woods just yet. I’m sharing NYSE Composite (NYA) because the apparent triangle in SPX doesn’t work on this chart (nor does it work on INDU — see yesterday’s short-term SPX chart) — this is because the wave which would be labeled as “e” in the triangle (8235.23) exceeds the apparent “c” wave bottom (8235.89), which invalidates a triangle for this index (which, in case you forgot, is the NYA).
The rally into yesterday’s high appears to be only three waves, at multiple wave degrees. In other words, the main question this chart poses is: higher prices now, or higher prices later? Watch the invalidation levels for clues.
Note the future wave notations aren’t intended to be time-accurate —
I’m simply working in the available space of the chart. Trade safe.
Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.
