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).