What does the DXY chart tell you (15- and 60-minutes)? If counts are confusing, let's keep them aside and analyze the market breadth, $vix, volume and pivots. Under 107.00 the bias is to the downside, yet it seems the it could be retaken soon. IMO.

Matt or Steve, What's your take on commodities now? The 60-period stoch UUP has been above 80 for many days now, and IYM is oversold. So is $crx. Is either one a buy or a sell at this point based on technical indicators on 60-minute charts? Thanks.

Unless I misunderstand something obvious, a sharp plunge in wave 3 down would be bullish for the markets, not bearish. Right?

Does he tell how this prospective drop will correspond to the movement of the $USD? 80.50 -81.00 is a resistance, and it needs to be breached in order for his scenario to play out. That's the only unanswered question for me, other his indicators support the move.

As far as being overbought, stocks are at the top of their BB on 15-minute charts. On 60-minute charts, EMA(50) is the line in the sand, currently at 1080 on $SPX. $NYMO shows an oversold condition. A likely possibility that this market will have an up day on Monday and perhaps early on Tuesday. SPY at 107.0 and 107.50 should be a resistance too, and we closed right next to it. Not much gains on the upside, yet a couple of range-bound days are on the horizon. FWIW.

$SPX 5-minute with $tick below it is priceless!

Very close, indeed. Gold needs to go lower from here to give that RSI reading.

Groups do not want competitors in making money, so they attack weak links. So far, weak links seem to be computers for Matt and Steve for this site. I don't find this coincidence ironic at all.

This looks like some kind of retest of the lows on Friday. For some reason, lows are always retested before moving higher. The market should still go to 1108 area and perhaps higher, but I am not betting my money on the long side for it.

I doubt that we got all of the correction so far. One thing that I learnt from McHugh is that a correction need span at least a 38% retracement (or it's something else). Secondly, wave 2 is supposed to give a buy signal for the market to confuse some and to give a sufficiently high risk-reward for those who play the counter trend. That means that short correction will not suffice. So, no, higher prices are yet to come. 1108 would be the minimal target before a reversal. Patience, please!

The pattern on the dollar supports this current decline to be followed by another advance in its wave (ii) down on the $USD.

You are amazing. You took a piece of information that you did not like and started finding faults with it. Yet, you did not mention his short-term analysis, which is correct. You did not mention that his call about the end of wave 1 down from last week was again 100% correct. He did not have any doubts on that, like some people on this site.

His updates are actionable, because they happen to be true. One should just use them. Why you are making a game of something that's just meant to be a guidance is totally beyond me.

nice, rp!

Yes, but UYM closed on the lower trendline of the channel. It has support at 26.00 but I hope it would not drop there. I let my position go against me without bailing out, as there was not much difference between the previous low and the low of the day today. Now the trend line from July lows is higher and is likely to cap the bounce.

It looks like the gap support was targeted with today's drop, perhaps to remove the remaining longs there before reversing.

rp, Thanks. I did the same drawing to see what you saw. There is an uptrend line from July lows on UYM, which should cap the advance of it. Today it comes at the 50% retracement that I mentioned above. In a week, I could be at 32.00 .

rp, Could you please post your chart of UYM and briefly explain how you entered it? The daily chart is somewhat obscure to me as to where the support was.  Also, could you mark your targets? I am going to sell at 31.80, which marks 50% retrace from the reversal date for SPX and 38% retrace of the top.

Also corrective waves, which are even numbered, usually take longer to complete then the "productive" waves. That was evident on the advance too, as the market spent nearly 2 months in wave 4 triangle in November and December. If you examine the purpose of corrective waves, you should see why this extra time lenght is required for shares to change hands.

Matt, let me ask a few questions for educational purposes. A retest of the broken triangle -- formed in wave 4 -- at the open today was wave 2 of 5, wasn't it? Then a steep decline to a new low was wave 3 of 5, and a high low was wave 5 of 5, wasn't it? If so, this count is incomplete or inconsistent. What other labeling could you suggest?

Also, how does wave 5 normally look in terms of patterns?

I am more comfortable identifying the patterns and then reconstructing the wave structure, as wave 2, 3 and 4 look very distinct from each other. Kind thanks to you for responding!

Thanks for the update, Peridot. It seems that he is extending his wave {3} into yesterday. If so, a retest of today's lows should come tomorrow, as he had projected earlier. FWIW.

The 144 stochastic is at 79.26 on the dailies for JJC? Is anyone else getting the same number? It's a sell then. What's an entry price should be?