On balance, wave'C looks set to complete later next week, around the time of the FOMC decision (Wednesday, 2pm). I'm quite expecting QE-twist to be extended, but that is NOT adding new money into the system, its merely meddling with the bond yield curve.
Lets look at those daily cycles...
IWM, bearish outlook
Dow
Sp, bearish, 4mth
Transports
Summary
I realise many of the doomer bears will be holding short positions across this Greek election weekend. I have chosen not to take that risk, which is based largely on my analysis of the underlying momentum on both the hourly and daily cycles.
I will feel VERY confident to re-short this nasty market AFTER the Bernanke has made his decision next Wednesday.
I currently expect wave'3 to last 3-5 weeks, and take us down to at least the sp'1150 level, possibly straight to 1100. There are numerous key indicators to keep an eye on that will be absolutely vital in order to help determine whether 1100 is the floor. I'll cover that in more detail this weekend, but for now...a brief preview....
Those bears looking for sub sp'1100 later this year...
WTIC Oil to break under $60
VEU (world indexes) to break 30
Euro/$ to break a new low...to at least 1.15
VIX to break 50
Gold $1300, Silver $22
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One minor thing still to post later this evening...