Thursday, December 16, 2010

Market Timing Update (12/16/10)

[EOD] The proposed top in INDU and orthodox tops in other indexes held today, by an extremely slim margin however. Thus, the message in Hope Rally Ends Here (12/15/10) sticks for now.

Squiggles most likely require some tweaking, such as marking today's low as wave (iv) of [v] of minor wave 5, when and if the proposed top is violated (beyond bid/ask spreads).

The other alternative count is shown in the futures chart (green), where today's low may be [iv] of 5 or C, if wave [iii] does not extend. Note that wave [iii] is shorter than wave [i] in that case, limiting the upside potential for wave [v]. Should the green wave [iii] extends, the upside will be substantially higher. The personality of the advance will shed some light.

[Real time entries] during the day session are archived at MTU Real Time.