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 22, 2010

Looks Like Hibernation Time Is Over

Wow ... That's really all I can say.

I mean I am a gun-shy bear too. I have had my .... avocados ... in a vice trying to guess some bearish setups in this bull run. So even I thought that the opening salvo would not be quite so dramatic (hence my leading diagonal post earlier today L(S)D Option).

So even a bear like binv (and I am one of the more bearish bears you will find) was surprised by the strength of the move down today. Things looked to be consolidating this morning into the end of a bullish falling wedge: momentum was slowing, bearish breadth was declining, sitting right on top of a support zone at 1105-1100.

But then we exploded down. And all I can say is ... Wow. But despite being shocked, there is a smile on my face.

Perhaps the market might start to make sense again? ... Nahhh, now I am just talking gibberish.

Here are my counts and charts for the SPX from 1-minute to weekly:

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