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Wednesday, June 16, 2010


Today is one of those days that you look to see if the bearish side of things will reinsert itself a bit and by how much. [a] wave of Minor 2 may have topped or will do so, probably early half, today. Then a [b] wave pullback. Thats the top count outlook. McClellan's is overbought at 75.

The top super bearish count has it all falling apart in that case a Minute [ii] or Minor 2 flat would have played out.  The market falling apart immediately here would go against the historical norm of having a 14 day breadth thrust event occur suggest more upside points for the DJIA is to be had.,

Top of the cuff, the DJIA usually stacks on another 200-350 points above the breadth thrust occurrence looking at past history. Not necessarily in a straight line, we could or should get the [b] wave first probably. So yesterday's 10400 high, you could say the upper target is at least 10600 to 10750 just as an example based on what has occurred in the past with these breadth thrusts.

But a [b] wave would be nice. When the tight uptrend channel breaks, that should help signal  [b] wave weakness.  Thought that would occur yesterday, but you can see it just refused to do so.

Good Luck

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