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Monday, November 8, 2010


As in 'this wave is winding up'. Not wind as a synonym to breeze. Although Bernanke is blowing a lot of hot air trying to inflate this market ... again (http://www.hussmanfunds.com/wmc/wmc101108.htm)

Regarding the count, here is what I have for the wave from the end of August. I don't see anything particularly compelling here.

Last week I was counting it as an impulse wave because the move from Early October looked very much like and Ending Diagonal. But now with the gap up above the trendline, that count is broken. And IMO there is not another impulse count in its place. The move since Early Oct is very overlapping and I do not see any clean (or even unclean) impulse count there. You really have to stretch things to try and make one fit.

This count is not great. It has something like 5 running flats in it. However a running flat is marked by a strong wave on either side of it and we have that in spades. So right now I don't see this as an impulse but a very strong corrective wave.

I guess it doesn't matter because up we go. We are starting to hit some long term resistance right now. Lets see if Bernanke can jawbone us through that too.

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