This is the same Russell chart I shared Tuesday after the close, with a small warning that the price action was at a point where a bounce could be expected, weird that today's high bounced off of the median channel line.
Looking over the squiggles at the close, it is obvious that there are multiple ways to count out the action over the last week, enough so that trying to make one prefered choice is not worth-while at this time. BTW, I stopped adding different squiggle counts on the above chart because Stock Charts does not provide enough annotations to cover all the options I see, besides it is already too confusing to keep track of all the short-term options as it is. Enough with these counts, I did post a chart in the post below with my best guess on the longer-term count this morning.The important part is the the SPX did break above the channel line, closed underneath the 20 day MA, and never made a higher high(1207.43). Given that, the downtrend is in severe jeopardy and any follow-thru tomorrow will likely confirm that.
The most interesting part was that the Breadth and volume numbers were lower then earlier in the week, with Breadth closing at 4.3:1, advancers on 1.2B shares traded with 86.37% of those shares coming in as buy volume. A strong day, but not yet as strong as Tuesday's numbers.
And poor GM, closed at $34.19.
Big bull trap today fueled by GM's PO and talks about Irish bailout. SPX finished bellow 5 days SMA so the bearish trend remains intact. If bulls manage to push market another 10-15 points tomorrow...well that is going to be a completely different story but for now bears are safe.
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