Warning Signs

2:30pm EDT: I don’t like today’s tape the least bit. First, we are pushing up higher than I had hoped – of course then there’s the NYSE A/D ratio that’s pushing the 4.0 mark right now. I just peeked at the daily Zero and it’s not even funny how today’s tape matches the fractal we painted last month – I will post an updated chart at the close today.

The XLY (consumer discretionary) seems to be holding against the SPX’s drop which is something to think about for us bears. However, as long as it’s not running up wildly I’m content.

Meanwhile, the tape has remained sideways since the morning open – I expect there to be some type of resolution at the EOD. If we do not get a bit of selling action into the close I would be worried for the short term bearish case. If we are in a third or minute degree fourth wave right now we have come as far as we should – 1040 SPX would be pushing our luck. So, we better see a drop here soon, fellow bears – otherwise I’m afraid we’re going to see a repeat of the September bear trap.

I’ve got a major headache plus I have a mountain of chores I have to take care of. So, I’ll be quite into the close and will only chime in with a very brief wrap up post.

Cheers,

Mole

UPDATE: 15:05 EDT – Berk here.  Thought you guys might like to see a little update of the good ‘ol bearish road map…  Granted today’s action has been nothing but bullish, you can’t say I didn’t lay it out for you.  Sorry in advance to all you old folks out there, I am not gonna brighten this up right now.

Not too shabby of a projection, eh?

Not too shabby if I say so myself.  Let’s hope we can follow the next leg down to the “T” also.

The buy signal is quite the caution for all-out bears. Let's see how it plays out.

And that, my friends, is yet another buy issue (I am assuming we are gonna hold below the 2.0BB by the close).  We will know tomorrow whether it is confirmed or not.  Either way, this tape is urging extreme caution if you are bearish.  We have not eliminated any bearish counts, but we have yet to get solid confirmation of them either.  Try to bear with me here, and have some patience until this tape finally reveals the truth.

Good luck mates…