Now we’re at a place where the direction for the next couple of days will be established. The markets fell back into the wave 4 flat after producing what looks like a double top on the DOW and possibly a failed 5th wave. Caution is advised here, however, as the markets could simply hang sideways and chop around until more of the overbought condition is worked off.
I think you still need to be cautious here either way and I note that the indices are all still higher except for the AMEX and Utilities.
I also note that the IRX (3 month t-bills) is higher than the zero where it has been. Below is a P&F chart showing a target that’s still higher (of course anything is higher than zero and that target is still WAY low):
Here’s a chart of the XLF… it’s up for the day, but note that it pinned the 50 day moving average and pulled back:
I also note that IYR and all the CRE companies are lagging.
At any rate, the rest of the day should be interesting, I don’t have large positions on anything but am still short a few select issues.
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