Massive intra-day rebound rally in all indexes…..

The Dow’s final number tells all…….

Yesterday’s rally exceeded my target zone by 2 points, and has necessitated a slight shift in the wave degrees.  The rally was probably a bit too large to be blue wave (4), and has thus indicated that it is most likely the higher degree red wave iv.  This leaves an interesting situation where red wave i and red wave iii are nearly equal lengths.  This type of behavior commonly precedes an extended fifth wave. 

That means that while the target zone of 1240-1260 remain unchanged, the potential exists for a fast drop down into the low 1200′s.  In other words, things may be even a bit more bearish than previously anticipated.  We’ll have to see how the wave unfolds to confirm or deny this expectation.

The rally has now formed a clear a-b-c structure (unlike yesterday’s somewhat fuzzy structure), and it has probably topped at Tuesday’s 1328 print high.  As I’ve said before, though, 4th waves are known to string several fractals together, so another down/up sequence can’t be ruled out (or anticipated — it either happens or it doesn’t).  I suspect there probably will not be another down/up, and that the top of this wave is in.

The intermediate outlook is unchanged, with the exception of the addition of the more bearish potential of an extended fifth wave decline to the low 1200′s. 

In conclusion, outside of the more bearish possibility, there’s really not a whole lot to add.  Things have played out pretty well in line with the updates and targets from Thursday/Friday. It remains my belief that we have seen an important and major trend change, and that this decline is only the first wave down of many more to come.  Trade safe.

The original article, and many more, can be found at http://www.PretzelCharts.com

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Alright, sleep is becoming a thing of the past for me, and exhaustion a thing of the present.  So this update I’m actually going to keep short, unlike yesterday’s failed attempt at brevity.  I spent a fair amount of time on the charts, so hopefully they’re self-explanatory.

It appears that the preferred count of Friday and Monday was a dead-on hit, and that we’re now most likely in blue wave (4).  There are more bullish potentials – so as always, I would caution against any temptation toward complacency. 

This rally wave currently has an a-b-c appearance, and could be nearly complete.  However, fourth waves are known to frequently string together several fractals, so another up/down sequence wouldn’t be out of the question.

Most notable levels are discussed on the chart, and bears should definitely be cautious in event of any breakouts above the red trendline.

The Nasdaq appears to have further to fall.

The next chart simply examines the trendchannels on RUT.

The original article, and many more, can be found at http://www.PretzelCharts.com