Monday, July 19, 2010

Market Timing Update (7/19/10 Close)

It's all in the squiggles.

As I mentioned in the weekly commentary, since the expanded flat 2-up is probably out and is effectively the same as a zigzag 2-up, I am replacing the blue-labeled count in Chart 1 with a A VERY BULLISH COUNT assuming that the July low is a major low and the market marches to new highs from here under this scenario.

My preferred count of the VIX is tracking fairly well so far. Additional near term upside for stocks?