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SPX, INDU, RUT, NYA: Market Wants a Debate


The bears are demanding equal airtime...


In a further attempt to fit everything together, we have the Russell 2000 (INDEXRUSSELL:RUT), which also has enough waves to form a complete correction. RUT really makes me wonder about SPX and INDU, because if the recent low breaks in a material fashion, it will be hard to see that as a short-lived event, given the present pattern.

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The market has so far been unable to hold support -- and the fact that 1474 has held keeps the mega-bear count alive. If it weren't for INDU's final high on a three-wave rally, I would be favoring the count shown below... especially since it's the only wave count that seems to connect the whole structure from March 2009 into a cohesive form. This count suggests that the market has seen a major trend change, so we'll keep watching it for confirming signals -- but until there is some confirmation, we'll assume the long-term trend is still up.

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No positions in stocks mentioned.
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