For several months I have been commenting on how this “correction” in the S & P and Dow is quite remarkable for it’s length and tenancity. But, it still looks like a correction for several reasons:
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using the S&P continuous contract as the proxy for the S&P, you can see that we have yet to retrace 50% of the drop in both price and time. If we keep with this retracement projection, we would end up at about 1120ish at the week of 11/09.
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the trend channel drawn of the bottom two points of the upward correction are still keeping this move intact. As I’ve said previously, I would expect a break upwards of the trend channel if we were in a true impulsive wave move upward.
50 50 Correction target
So, what does this tell us? Not much. It just shows that we still do not have any confirmation whether we are in a new “bull market” or are still in a bear market rally. I still lean toward the latter which is why I am only trading this upward move and not “investing” in it. So, I keep waiting…as patiently as I can.
