15 Nov 2012

Sideways to down trend.  Still looking for a brief rally in the index to set up for a downward push.  We need this rally to show up on the daily charts to make it significant enough to count.  Our daily candle made a doji, with 60min. trying to come out of oversold range.  A 60min push up back to overbought would be substantial enough to reset for the downside.

The upper chart is just an approximation of what wave structure I would be looking at.  Of course the indicators are still your best signal, but what Im attempting to show here is that we could still be in another wave of rally before coming back down to complete a possible larger degree wave 1.  our MACD seems to want to cross up. Therefore if its true then we should rally up and relieve some pressure and reset our Stochastics back to the top.  Our weekly charts are bearish and I would not think otherwise that we are done with the movement down until the 2nd wave larger begins to unfold upward, in which time the weekly should turn up at the same time.