Stocks on Fire, Will They Cool? Euro Correcting 5 Down

Today's internals give me a mixed conclusion on what they represent to the short term action.  However price action suggests a possible reversal is at hand with today's late weakness.  If the bearish count I posted this morning is correct, then today's high should remain intact.  Regardless of the wave count at this point, with today's high being the risk level to stop out at, I'd be shorting into any rally I get tomorrow morning with a stop just above today's high. 

THIS MORNING'S POST IS BELOW:



As you all know from my last post, yesterday's rally was expected.  And I thought we'd get another pop today to the 1167 area I cited as well.  But today's action blasted right through 1167 like it wasn't even there.  Now, 1180-1197 marks the reversal area I'm watching now.  I see no weakness in the rally so far, but this is a 2nd wave and they are often very strong and fool us into thinking the trend has reversed.  Only a break above 1197 would be concerning, a break above 1220 would negate the bearish count you see above.

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The euro appears to have completed 5 waves down and is now correcting higher.  I'm looking for the euro to possibly push to just above its prior 4th wave high to the 1.4000 area again before it tops and reverses lower.

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PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.