But lets get this out of the way:
The Leading Diagonal is dead
Goodnight LD. We hate to leave you. .... :)
So, lets rewind to yesterday: Another Look at "Always Another Option". Here is what I wrote in that post
But here is where this count comes in. *If* (this is not my preferred count, this is a "just in case" count at this point) we break above the upper trendline on the LD on this wave without making a new low, I feel the LD count will be invalid (or else severely truncated, which I don't buy). So in that case everybody jumps bullish. But this count suggests that it would be a bull trap of epic proportions.
... Mr. Market sure is being quite devious at this juncture.
Well we did break the upper trendline on the LD without making a new low. This is why I consider the LD to be dead.
But does that mean it's super rally time? Not so fast.
So far this move off the bottom is not developing impulsively. Like I point out in my last post LOL!, look at the entire wave structures in yellow. *VERY* similar in both cases.
This is another overlapping mess. I am really skeptical that we are in an impulse up.
I think the next target is 1110 (38% retrace of the whole down move). I will re-evaluate once we get there. But like I point out above, this could be a big bull trap. 1110 is some serious resistance since it was tested and failed the last time. I am still sticking with my shorts, and may consider adding at 1110 depending on how the wave looks. I am going to be very patient with this wave.
