Sunday, July 22, 2012

MTU Weekend Ed. - Short Term Update (7/20/12 close)

Since the rebound off the early June low in U.S. stocks counts best as a series of threes so far (Chart 1), the top near wave structures are thus
(1-red) a bearish triple-zigzag
(2-blue) a bullish leading diagonal triangle initial advance.

Both structures likely have topped at the most recent high. If so, a pullback to at least the 1310 area is likely, short term rebound notwithstanding.

At the same time, implied vol is approaching Hope Rally lows (Chart 2).

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