The daily supposes if the SPX makes a new low under 1101, TLT will not make a new high to create a non-confirmation situation.
Squiggles shows an impulsive type move to the downside in a tight channel. May be due for a bounce (and stocks hence down). Hasn't yet closed under Ben's announcement day of Operation Twist, but we suppose in the near future it will.
ORIGINAL POSTIn the overall scheme of things, there is still the business of a wave [v] requiring a new low under 1101 SPX.
After a spectacular sustained open in which the up volume ratio of the NYSE exceeded 60:1 and there was sustained buying pressure most of the day on the "hope" of a solved Euro debt problem, the day almost reversed completely and ended the day at a more muted 3.65:1. The banks (BKX) ended today almost in the red - flat to be fair.
The last 6 weeks has seen stocks traverse some thousands and thousands of points in the DJIA. Quite an amazing period of volatility and makes one very weary. One would think that wave [v] low will occur at the official announcement of a Greek sovereign default.
The market is missing at least one wave down is the best guess. I use Wilshire for form.
SPX daily. Unless and until 1230 SPX gets taken out to the upside (in which we would probably label it as Minor 2), we are still solidly within the 1100-1230 trading range.