Anyone care to hear that the markets set new highs yesterday? Any one care to hear that the /ESU9 put in a perfect double top overnight at 1038.75? Funny now that most counts match mine now. Nothing like having EWI (and some others that will remain nameless) bow to their daddy Shanky's count. (Now get on your knees). Remember I don't truly count the squiggles and such. I play TA first using broad and short market formations and indicators and THEN marry that to EWT principles. Oh, and the big secret, trust in the manipulators (never bet against the house playing with HAL 9000). So the ABC correction has new life as I see it. My target date of 10/12 is in tact and target range of 1050 to 1121 in tact.
On to the markets -
Stockcharts is still down, so no charts from them this am. One simple chart.
/ESU9 - THE CHANNEL. I have pointed to it as your guide for several days now. It needed a little adjustment Monday, but it is solid and there. The other thing that I have told you to watch is the trendline above the daily RSI. Market is closing in on that, so look for a potential turn there. The other other thing is the 50 and 75% lines inside the larger channel on the /ES. 1038.75 on the /ES almost touched the 50% line which is close enough for government work IMO. The daily indicators still look bullish (watch RSI). SPX is in the resistance zone established at the last top.
I can see this as ending a 1 of 3 of C the way the daily indicators are trendling and possibly setting up a 2 down, thus further setting up the indicators for a 3 of C up when the dailys bottom (that is in a dream perfect world scenario). This all appears improbable when looking at the weeklys (but not the monthlys).
Remember I have been begging for a larger pullback to set divergences on the weeklys and then the final sucker run to the top. This is still a possibility, but looking less likely. I have also been a staunch proponent of something "external" happening to rip the market away from the manipulators grasp to begin P3. When the fall starts, you will know it. It will be brutal and I am speculating at least two market closures on the way down. Investors know the fall is coming. they experienced the last fall and will not hesitate to head for the gates this time.
So look for a 2 wave to begin soon. To what degree? 1015 to 1009 are the current retracements. I'll be looking for Some sort of triangle or ABC to form soon.
This weekend I'll put some charts together with targets of the potential top if it should occur.
GL trading today.