I think it's good from time to time to post the big picture so we don't lose sight of what's going on-on a large scale. The chart above is a daily chart of the S&P. I labeled the chart assuming that we will soon rally sharply in a wave (4). You can see that once that's complete, we will fall to new lows for 2008 in a wave (5). Once that occurs, the entire decline since last year will be wave [1] in a 5 wave cycle. So a major multi-month strong rally will occur in wave [2], which I feel will be due to the euphoria of the Obama presidency beginning. This wave [2] is one we don't want to get caught short in, and we definitely want to be long during this rally.
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