A subscriber mailed yesterday asking if I thought the top of 'wave 5' was in. I answered thusly:"MACD and volume tell me that it very possibly is complete. Also, the Dow reached the resistance zone noted and has retraced a full 62% of the crash. So everything is in place for this to be a top. But, that is a lot different than stating definitively that the top is definitely in.
The Dow has some support here around 11,000 and we can begin to plot downside if and when it loses the 10,750 level, which has more important support."
SPX chart is shown here with it having held the equivalent support to Dow 11,000. The measly little red resistance line is probably all that separates the short term bear case from extinction as the market has not even taken a whiff at the more important support below.
Fed to the rescue... Greece fears (and positive 'relief' reactions)... earnings... and a world of traders hopped up and ready to speculate. One thing I think has a good shot though; the precious metals sector is setting up to be a leader once again.
