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Wednesday, May 23, 2012

May 23

What a crazy couple of days. However these gut-wrenching moves have a potential corollary, in recent history even. The move out of the May 2011 top.

Here is what that looked like:

Here has what has unfolded so far:

Is the correction done? I give a little better than even-odds that it has. Like I said Saturday, the 1290 target has been met, and that this week needed to rally or at the very least stop crashing. That was not a prognostication, but merely an observation of what needed to happen this week to keep the Long setup which has been open since Oct 11 on my Daily Trend System alive. And we had a huge scare 'redux' again today but a strong rally into the close.

Which means that so far a turn looks to be occurring exactly where it was needed. So for this corollary to play out, the bulls need to make significant progress in confirming this breakout Thursday-Friday. We we see if they can manage it.

Here is my current best guess at a count:

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