Chop, Chop, Chop…

Yawn… Another day at the markets, and again, not much has changed…  As Mole pointed out in the last part of the update, open @ 869 ; close @ 869… If you made dough in between, then great.  If not, staying in bed would have been the wiser choice.  Alas, we are back at work, and it is actually getting pretty exciting…

One thing is certain though, stock have not been moving higher, at least not for the past week or so.  This doesn’t mean that we are “going lower,” just that we aren’t “going higher” (i.e. stagnation and/or loss of momentum).  I have said this about the markets 3 times in the decline (now being the third), and let me illustrate the others…  What is interesting is the time of year when these actions happened.  The big boys were gone at all 3 times when this chop happened (which is a great illustration of who REALLY moves the markets).

This stagnation of uptrend, combined with all the indicators we have been mentioning paints a solid picture of a strong bearish case.  My primary count at the moment follows this strong flow of evidence, and is calling the recent action the topping touches of a rally phase (wave II) of the ending diagonal.  I believe that we should be heading lower from here on out, but will give the institutions a chance to get back in the game before I am really sure.  The alternate count remains the dreadful chop of the triangle.  I can’t wait to get rid of that option, but right now, we are not in the position to do that.  Thus, we wait…

$NDX…

With that said, I will cut it short tonight while Mole and I amass a grand evil assault for just after the new year.  Yes, I know it is a short post, but until the market gives me something to talk about, I will patiently await my turn to speak…

Be sure to relax in the final 52 hours of 2008!!

Skål!