The SPX clearly benefited from the drop in the Dollar, as did all commodities, with Gold making new highs, and up $40 bucks on the day. I refuse to join them, and will sit on my hands until this new enthusiasm exhausts itself. I still find it outrageous that the FED waited until the election results were in before releasing their numbers. The voters made it clear that they do not support more spending, so now the Government side-steps Congress and the American people to print and create another 600 Billion dollars(low-ball estimate) to prop-up the markets, with-out even considering the negative impacts this does to our Dollar, or the people them-selves. They seem hell-bent on creating hyper-inflation. Yes Obama, I see you do care for the middle class!!!(rant over)
The SPX finally has a nice five waves up off of the lower channel line, but there are a couple different ways it can be counted depending on if todays high marks the top of the 5th wave, or only the 3rd of a 5th. Short-term there still is a little room left to run to the up-side before resistance kicks in from the upper channel line and the indicators have yet to peak and start rolling over suggesting that there are still a few small squiggles left to go. For the longer-term, please see the charts I posted this morning. The SPX daily chart still has the price action well outside of the Bollinger band, so a quick reversal to recapture the band does have good odds. There is a good chance today was a major blow-off top, but this scenario needs the SPX to go bearish ASAP and quickly retrace today full move.
Needless to say, the trend does remain up as long as the SPX keeps making higher highs and with this Government manipulation Elliott wave becomes close useless in the longer-term if Government can over-ride the principles that govern Elliott wave. I still feel that we are building a top of some sort, and the longer it drags out, the larger the end result will be will the selling begins, but in the mean time I will stand aside and wait for the market to come to its senses.