1/4/12

The market went to the right today.  I think, if it were to have gone to the left, we would have more to worry about on our hands than even a Submillennial-degree downturn.

The count I described previously remains intact, with a necessary truncation on the Dow and a possible truncation on the SPX.  I added to my short position today.

Extremely small-scale intraday waves can be difficult to count and are more prone to breaking rules.  The point is that the market seems to be struggling even as social mood has become quite relieved.  What Eurozone crisis?  What China slowdown?  This is what you expect at the tip-top of wave 2.

Provided 1288.50 does not break in the SPX, the market can make a new high above where I have Micro [3].  The preference is for the DJIA to go no higher than 12,468.71, only fifty points from its close today.  But this is doable; the Dow stocks could, for instance, start a tumble "early" while things like AAPL and GOOG lag it - the Nasdaq, unlike the Dow and SPX, is still under its daily Bollinger band.  (The Dow is also weighted by share price, not by market capitalization; this might have an effect.)