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Thursday, December 10, 2009

Elliott Wave Update ~ 10 December

Well the leading diagonal down still fits until proven otherwise. Its in the bulls' lap at this stage. Record low bears are already out of the game just waiting or converted.

The whole market is like a big game of chicken. Any attempt to breakout above 1113 was swatted down pretty hard by bears and profit taking. And truth be told there has yet to be a hard down move to break the 1085 support level. Once that breaks, things could pick up. But so far it hasn't.

In actuality, on the e-minis all hours, the bears had a great thrust down to 1067 over the holidays that never translated to the cash index when trading resumed. Suspended disbelief will not last forever. The rally is already over 9 months old. 10 months is a "perfect" Fibonacci relatrionship so again we await.

The primary count of a leading diagonal down infers that a harsh bear move is coming shortly maybe tomorrow. If it doesn't come, no biggie, let em take it higher if they can. Bargains! heh

Here is the problem in a nutshell: If a breakout higher occurs, "everyone" and their mothers will short it into oblivion. But the "expected"correction keeps any actual correction from actually occurring. Hence we are stuck in a range-bound market for now. They are all jockeying at the end of year and it reflects in the waves.

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