Monday updates

Bears, please close your eyes before looking at the next chart!!!

I am throwing this count out there because it has been on my mind for a long time. I expect to be fully ridiculed, and even get some threats of my home being burned down by the bears for presenting this count. LOL

I have refered to this as my inflation count in the past (and even kept the chart under lock and key), but never thought it was even a slim possibility, until now. What has always intrigued me about the count is the fractal nature it possesses, an expanding triangle for both wave 4's. The bad news is we would be looking at new all time highs very soon, before another major sell-off, but with the way the FED is printing money, I can envision this playing out now. the risk of inflation driving equities higher for now, then when The FED starts to raise the short-term rates and applying the brakes, a major sell-off ensuing as investors start worrying about profits being guided lower with the cost of capital increasing.

I also could lay out an alternative scenario with the banks and mortgages.

------------------------------------------------------------------------------------------

Do or die time now for the SPX, we have arrived at some very heavy resistance with many highs and lows made at this level, if the bulls can push through here resistance will be lighter towards the top. Bears need to hold the line now!!
After the close, It was fascinating watching this chart today, I posted a link down below at the beginning of the day to share the chart. The SPX really respected the fans today and ended below the most bullish fan.
Something that should be concerning to the bulls was that as the indexes were making new highs, the VIX was complacent and never did make a new low. Also as the market was making new highs the number of individual stocks doing so keeps dwindling.
I have no count on the SPX that I am comfortable with besides a very bullish scenario, a 1-2 up. But we are going to need some very serious follow through for that to happen, with some higher volume. The SPX was contained by the trendline of resistance from the October and November highs and until that gets breached with authority I am leaning bearish.
Breadth for the day ended at 4.13:1, advancers, a very respectable number if the volume followed suit, which it did not, volume was very low for the day.
The day ended with negative divergences showing on the indicators, while the SPX was making higher highs, the RSI, STO, and the MACD where making lower highs. A short-term bearish signal.
10:44, So far the SPX has been stopped at the trendline!!!!

8:30, This is not a very good sign for the longer term bulls, as the indexes are making new highs today, we are seeing fewer individual stocks making new highs. That should not be happening in a healthy bull market!!!

8:01, The SPX is now testing the upper trendline of resistance, if this gives, there is quite a bit of upside until it runs into the second trendline.

7:48, This is a very possible count on the SPX, a 1-2 completed as I mentioned last Thursday. The bulls also have breadth in their favor today, 4.94:1, advancers. This is the highest readings the advancers have had in the last month.

6:46, Here is a bullish count for the Russell, unfortunately it will not work on the other indexes. Wave 4 entered wave 1 on the SPX during last Thursdays sell-off at the close. The Russell also made a new high this morning.

Click here for an updated look at the Fib fan chart, and please vote!!!
6:36, The SPX opened gap up, and reclaimed the bullish Fin fan.

5:53, Glad to be back!!!
Hope everyone enjoyed the holidays!!!!