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Wednesday, January 26, 2011

Wednesday Updates!!!

The look of the Dollar is not very healthy on a weekly scale, the indicators have rolled back over to a sell, and the Dollar is dangerously close to testing support of the long-term trend line of support.
The SPX did make a new high today, but the internals are still weak and the Russell, BKX, NDX and the TRAN still have not even came close to making new highs. Breadth was only 2.27:1 at the close on average volume of 1.12B shares. I am presently neutral, and in cash until the markets can breakout with some strength. With the longer-term technicals very weak and the SPX not having a decent correction in two months, the rewards are just not there for me to go long at this point. The risk of a sell-off is high at this time, just exactly when it happens though is a different story. Tops are processes, and are not as clean-cut as bottoms, which are typically quick and sharp reversals. If Breadth were to increase and the indexes as a whole broke out to the upside, I would not hesitate to go long, but for now, staying neutral is probably the best plan. The SPX is bumping is head on the black short-term median channel line that is current resistance, support is from the previous lows marked by the red lines in order of importance. The EW count, is a mess, and I do not have much faith in them at this time, price action is far more important then the squiggles right now and the bears need to see lower lows get printed, otherwise the trend does remain up. Also of note, the indicators are once again back up in over-bought territory.
There was only one change on the Trend Finder II today.
-Staying Ahead Of Sugar: The Benefit Of Elliott Wave Analysis


  1. Isn't there a gap to fill on the Dollar around $77.50 from last November? Next day or two should be the tell. I'm with you from an earlier post though. If it does not show some life from here or soon, the future for most of America is going to really suck.

  2. Just got to be patient mate- it is coming. As you said, you cant justify getting long here