The last 2 weeks of waves have reminded me just a tiny bit of the sideways November - December 2009 B wave (what we called it at the time) correction. The market gapped up numerous times only to wind up selling off or gapping down numerous times. Yet a trading range held until it could muster up a breakout. So today, after 3 days of gapping up, this one did not close before end of day.
(To be fair the waves also reminds me of the sub-700 SPX in that it just kept going down in a "pushing" manner and sentiment reached bear low. Here prices may be "pushing" up and sentiment is working toward a bear rally high - See SPX 1 minute chart at the bottom)
One interpretation is that some kind of Minor B wave is forming on the SPX and Wilshire and it has yet to reveal its hand. The DOW however, seems to be in a differing pattern and perhaps wants that 11,000 "hit" first which is dragging everything with it upwards.
The Wilshire 10 minute chart shows the general thinking here. There could be a complex B wave forming. Or perhaps an expanded flat or some kind of triangle, either ascending or contracting. We just don't have enough info yet. The pattern is similar on the SPX. 1150 is a key level overall for the market at this stage. It has spent enough time elevated above that any close below 1150 may be taken as a "false breakout" and looked at as bearish.
Overall a Minor-sized "B" wave corrective implies a Minor sized C wave to come that will push the markets even higher. How high? Look for a Fibonacci relationship between C and A.
But first I am not sure if we are in a B. It has to have the "look" on the daily first which it has yet to do:
So tomorrow is yet another key day in the life of this market as it is simply open-ended at this moment in time.