There was a good battle going on with the Fib fans today, and the bears definitely walked away the winners, solidly down below the last bullish fan.
I have an optional count in Gray on the chart I am watching, where only the "A" wave of the 2nd up was completed, but I do not have as much confidence in that playing out.
Breadth for the day was only 1.81:1 decliners, on low volume, enough for me to have a little faith in the optional count and keep it on my radar, as I would of liked to have seen the breadth higher at the end of the day to match the start of the 3rd wave down.
We made a higher high at the open, but then later made a lower low on the SPX, leaving the short-term trend slightly more bearish over-all.
FWIW, I kept my 75% short position over-night in Wall Street Survivor, and will add the other 25%, upon breaking below 1144.50, or will add if we make a short-term new high in the optional count.
Click here for a live, updated chart!!!
10:30, Here is an optional count for the 2nd wave up, from the chart below. In this chart, we still have the final "C" wave left to complete the 2nd wave up, before we start the 3rd wave down. Breaking below 1059.24, before making a new high would invalidate this count.
10:19, Updated chart, I forgot to put a link on the chart below so you could see an updated chart. The double zig-zag count has been completed, and odds are we are in the 3rd wave down now.
8:20, I added 25% more in shorts in Wall Street Survivor, now have a total of 50% shorts, and 50% cash. 7:45, This 2nd wave retrace is starting to take on the look of a double zig-zag, a-b-c-x-a-b-c.
6:50, A quiet open this morning, the SPX is still with-in the same set of bearish fans from Friday. 6:35, I went 25% short in Wall Street Survivor , since we were close to hitting the 38% retracement level, I will add more if we retrace further in anticipation of the 3rd wave down.