rp, it's nice to know what you said. Steiman did sound convincing to me, I must admit!

http://thepatternsite.com/EWleadingTriangle.html if anybody wishes to read about it

Based on my feelings, April -May 2007 was similar. it was just as misleading for both sides for 3 or 4 weeks, as I remember. That's based on my experience of the past 3 years.

Steve, Is it (the LD)  complete now? I am missing the reference of "diagonal". I am sorry but this is confusing. Without using Elliotese, this looks like a distribution pattern after the uptrend -- through the up-channel -- was completed.  Now it should form some sort of a rectangle before breaking in earnest to the downside and retracing the most of its advance, like you said. That would be a retest of the lows at 1044 or a test of of the MA(200). Thank you for your time!

perth, Your detailed and coherent description speaks well to me. Perfect! 

Steve, Could you please draw a completed sample pattern for the leading diagonal? I could visualize it for an up-sloping channel, like we had in January on $SPX.  With a down sloping channel it's a bit different. I view this leading diagonal as a C down, or {1} of 3 down. I am not sure what another bullish count -- besides C down -- it could fit into. Thanks!

It looks like 1002 is still a top -- Matt's chart with a trend line was enlightening -- and you are expecting wave C to go down to 1073ish, if I follow you. What scenario does it fit into? Thanks for your comments!

perth, What's 3-3-5?

I learn something from him each time. Check his postings on www.financialsense.com and see for yourself.

I love your educated guesses. Pure math! Thanks

Daily versus 60-minute charts. Intermediate-term versus short-term. Thanks for both, Peridot!

rp, yes I referred to SPY. Given the overbought nature of the market, I don't think it's a one-day pullback either. Thanks for your comments and take care of your family, as this stalemate is likely to last into the close.

rp, thanks and pardon my poor phrasing of the question. I was asking about the targets for the entire move down, perhaps into Friday. As far as short-term 110.00 is the "line in the sand", and hopefully we'll close below it. I am joining perth is expecting 1080 minimum on the downside. As far as the bounce, again 110.00 might be the trigger, and we are there now.

rp, I take your target for XLF is 14.07-08. what's your target for for IYM short (SMN)? Your comments about the hit-and-run market speak well for me.

Splendid, rp! Thanks for posting your trades here!!

Solar energy stocks did too since the opening today. $crx closed up but it may follow the suit.

Expect this uptrend to continue into Wednesday then!

But there is a $tick divergence on the recent high on 5-minute charts

http://stockcharts.com/c-sc/sc?s=$TICK&p=15&b=3&g=0&i=p58145293249&a=159157611&r=998

I am not sure if this means that MA(50) is providing any resistance on longer-term charts.

Thanks, rp! I've noticed the same retest on the GDX 60-minute chart, courtesy of Matt. How does the IYM look to you in that regard? (My target of 32.00 is about to be reached on UYM, if only I re-entered the trade after the 1044 bottom :( )