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Bears Close In on Claiming the Market for the Long-Term

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Bulls need a game changer, and are at risk of losing long-term control of the market.

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The bearish interpretation has been steadily gaining traction, and the rough expectations of the bearish count are charted in detail below. This count should probably be considered as the narrow odds-on favorite at this point in time. There is a nice symmetry to this interpretation.


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The Dow Jones Industrials (INDEXDJX:.DJI) presents a slightly different option, due to the possibility of a complete five-wave decline. The bull count is shown in rough detail in green.


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On the long term chart, here's how the options break down right now. The bear count is featured on this chart, but still has work to do to prove itself. Two bullish alternate counts are noted -- the first is at Minor degree, as discussed a couple charts ago. The second bullish alternate is at intermediate degree, and would still be quite bearish well into 2013.


Click to enlarge

In conclusion, the market is approaching a potential inflection point, and bulls need to capitalize on this to keep playing. If bears can push through here, there will be little left for the bulls to cling to, and bears will get one step closer to claiming the market for the long-term. Trade safe.

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No positions in stocks mentioned.
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