I analyze macroeconomic issues from a fundamental perspective, and I analyze market behavior from a technical perspective. Original macroeconomic analysis can be found here and both macro analysis and commentary can be found on my Caps blog. If you like or appreciate my analysis, please add yourself to my Following List

Friday, January 8, 2010


So I will continue to show the count options based on the series of posts / counts I have been showing the last several weeks. There are other options out there, to be sure, but this is my preferred and I will always show you my preferred (unless there is a very compelling / equally plausible alternate). But I think this best describes the price action (IMO).

I think this last wave is forming a diagonal (no surprise) and I can see two ways to count it. The first says we are done. The second says we a have a few more days in it with a very slightly higher high to come.

There are merits to both counts, so I will show you both. I am still short, but I still have a cash position waiting for either a higher high or a confirmed breakdown. There is still an "unresolved" feeling about the price action at the moment.

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