We have a slew of Fib relationships and we are within a target window for these.
Stocks have reached record territories in closing above its 10 day moving averages. Closing above its 50 DMA. All sentiment charts are extremely bullish and have been persistent. Put/Call data is very bullish. The market is ripe for a turnaround. I am sure I will hear the 400 catcalls about how its ignorant to say so but thats what EW theory is about: counting waves. Thats what we do here.
I have been steadily charting this Minor 5 in a patient fashion. The time is near. Minor 5 is nearly equal to Minor 1 in all intents and purposes after Minor 3 extended a near perfect 1.618. So there is no reason to expect we have Minor 5 run over 1300 resistance without pause. Intermediate wave (C) is .618 times the length of wave (A) for all intents and purposes. Full moon on the 19th.
On the credit front, munis http://market-ticker.org/akcs-www?post=177327 are coming under heavy pressure and are likely leading the way. A crumbling credit market will only lead to trouble for stocks.