24 Oct 2014 - Worry? Me? Markets Are Up Why Worry?

My expectations for at least a market correction was crushed, but not surprisingly as our indicators never confirmed a CIT to the downside.  Regardless, it is still disappointing as I have been waiting to short.  Safety is first, and anyone following the ST has been safe from the trajectory move of prices since the 15th of Oct.  Will this be it?... Again, it could be but we need the ST to confirm.

Yesterday as I cautioned of the downside move, I did see a 5 wave decline in the 1min chart.  The afterhours and pre-market hours has caused the patterns to play out in a larger 3 wave decline showing a more convincing corrective phase. (Shown below on a 1 min. chart).

The overall count does not matter, but what does is the nature of the patterns from impulsive to corrective...

The price for the SPX is really gunning for the 75 MA that I thought was enough yesterday by missing only a few pts.  Today it touched and exceeded it, and closed above it.  This is bullish...  We should see how many days this price holds at this level as the negative divergence is still in play.  The impulsive nature of the move since the 15th of Oct. makes me lean towards a renewed higher high outlook even if we are in a market bearish sentiment (Look to the right of the blog).  This only reinforces the dislocation of the market and the divergence price is having from sentiment.

A test should happen on the following levels...

1 - 1928
2 - 1908
3 - 1860

MT: DOWN
ST: UP
PA: NA

1 Min Chart:

60 Min Chart: