Even though the chart below looks ominous, the main count is above. A key trendline is still holding along with the daily MACD trendline on the chart below.



The drop on the 8th day back in April was approximately 26 points.

1/27/11 - EOD Update

EOD Update


The market broke through 1300 a few times today but could not close above it. I'm still watching the chart above with each of the 4 options in order of preference.

OPTIONS:

1. 4 ENDED AS A TRIANGLE (RED e) WORKING ON WAVES 1 AND 2 OF 5
2. 4 ENDED 1/7 AND WORKING ON WAVES 1 AND 2 BLUE OF V of an ED.
3. 4 ENDED ON 1/20 AND ONLY WAVE 1 OF AN ED FORMED (GRAY).
3. 4 MAY BE WORKING A FLAT (GREEN LABELS)




Here is the update to this chart posted yesterday. I'm not top calling here but just pointing out something of interest.

Well today was the 7th day from the last MACD spike high and MACD is curling up on the underside of it's signal line. Will be interesting to see if tomorrow fails like it did in Apr.

It even traded in a 7 point range very similar to the 9 point range in April. Makes you wanna go hmmmm.....

9:00 AM Update

9:00 AM Update

Sorry been busy updating charts in the chat room .



Here's the 10 min view of the primary. Below is an ED option that I am now watching as well.

A Top Tomorrow?

Did I get your attention again? I don't really have any thing substantial to say about it other than a small observation.

Many are saying the behavior up here is very similar to the Apr 2010 top. I figured I'd take a closer look again as well since my last post on this comparison two weeks ago.

I'm only basing this comparison using the behavior of MACD. Back in April, MACD dipped under it's signal line twice and then peaked before crossing back down. Once it had crossed back down, it failed to cross back right about where the market reversed.

Notice the long red candles that printed the day after MACD peaked (red lines)? By the 7th day after the MACD peaked, the market reversed.

If the market is repeating this pattern again, tomorrow is the 7th day since the latest MACD peak. Based on the last behavior, the market traded in an 8 point range that day.

We'll see if this is the case. I bring this up now because based on my wave count options, we are very close to printing the final fifth wave, which would be consistent with what may be happening here.

Keep in mind though, the are still a few options as to what this top may be. I also point your attention again to the fact that a multi-month trendline support is in play for MACD starting back in May.