Thursday, October 8, 2009
Overlap Confirms Decline as 3 Waves; October 8, 2009
Today's rally exceeded the previous high which was essentially the last ditch resistance level to maintain any viable 5 wave declining action and declare a major top in the stock market. And when you combine the fact that the break occured with 3 solid days in a row of extremely strong internals and virtually all bullish buying power with the 5 wave rally, it seems quite clear the market will make new highs soon above 1080.
This doesn't change the big long term picture for a crash, it just changes the short term expectation that were are currently in the crash right now.
The only hope for the bears is if the market breaks the lows of this month (1020 S&P) before it goes above 1080, then it will become extremely bearish at that time.