Is it wise to fight this?

The world's major central banks unleashed coordinated action Wednesday to ease the increasing strains on the global financial system, a move that sent stock markets up sharply.

You should always specify time frame though. 

Don't know for sure how much it will neutralize the European situation, but I am increasing longer term China exposure at minimum.  Looks like a good R/R to me.

SPX Monthly

Right now it appears to be in a wave 5 down on the daily and in what appears to be a bear flag. So, inquiring minds want to know.  Why?  The weekly looks worse.

politics but that was worth watching.

FIO

BPENER.  I never really know if you can see it right though.

otherwise I am personally ready to be short until I I can't.  But, I still don't know if RP's bear goggles are as strong as yours.

more positive than negative is truly uncanny.   

I especially like his work because the market is fluid and some people try to make EW counts much too rigid.   He is not afraid to make his count and then adjust it as new information presents itself.  Some EWavers try to make the market conform to their wishes rather than their counts conform to the market.  

Some of us are not able to day trade and it becomes important to formulate a slightly longer term view of the market.  At times like now that can be a very challenging task.  

I'll share some thoughts in the hopes that it helps somebody else formulate their own plan for the market.  I do not pretend to know which way the market is headed but this certainly feels like a major inflection point where a plan for what's coming may be helpful.

My personal plan is based largely on the NYSI weekly chart with the 5/3 stochastics (although I also use the BPSPX and BPCompq to aid timing).  I've been using this chart for a long time now and while no single chart ever gives the complete picture this one is very good at helping to understand where we are likely headed. At times like this I find it especially useful.  

In my view, how this next down cycle plays out will be very telling about where we go from here.  

But first, what do we see in the chart immediately.  Well- the NYSI has moved into mildly bullish territory at the +700 level.  Second the last cycle down was cut short at the beginning of October.  That also shows strength and is bullish.  But putting it into context we were also coming off a vicious down move on the S&P so things are far from rosy.

NYSI Weekly

Now, as you know we have been grinding higher lately -ugly maybe but grinding and the stochastics on the NYSI are finally about to crossover to the downside.  So in my view 4 things can now happen.  

1. The stochastics cycle down as they typically would and the market only has a mild typical pullback.  Then I think that is bullish and we probably go much higher.  

2.  The stochastics go down part way and cross back over to the upside, then I think that is also bullish and we probably go much higher.  

3. The stochastics follow their normal course down with a very large corresponding move down in the S&P.  Then I think the bear market is firmly on.

4. Finally, and rarely, the stochastics cycle all the way down while the S&P continues moving higher.  This only happens in strong impulsive moves and you better get onboard somewhere along the way.

Whatever you decide to do don't be too positive going into the the coming downside crossover until you get a better idea of where the market is going to take us.  

john

BPENER

PF

address their financial problems by shuffling leaders/cabinets and coalitions in the middle of rather important decisions.  Some consistency seems to be something that might help right now.  

If the people were tossing the politicians out, then I can understand that.  But from my vantage point (blurred and far away), it appears to be different factions just looking for a way into the command posts.  I wish I understood what the heck they are doing. 

ERTS.  I think they may have had good earnings (not sure about that), but they do have a new game out that is pretty hot.  Look to be moving out of a long weekly base into an accumulation pattern.  Volume is good on the first try out.

be able to infer some culpability to CME.  True or not, who knows but it may depend on criminality that may come into play.  http://www.minyanville.com/businessmarkets/articles/mf-global-files-for-bankruptcy-mf/11/2/2011/id/37729

My end of day daily data appears correct.  Intra-day data is showing data from May 25-26.  Um, that won't work.  

the crosshairs.  This is not going to end for a while and it looks like it won't end well.