The market's hard turn south could commence any day now...
No holiday to explain today's thin trade. Yet light volume reveals there's little selling threatening levitation. So, some days more could pass before wave c finally is completed.
Same old, same old sees momentum (bottom panel) flattening in suspension — something of a trend prior to a periods of weakness since March '09 bottom.
Underlying technical weakness continues building. Likewise, the McClellan Oscillator's behavior highlighted above seems entirely fitting the Elliott Wave count ... first, going into April top ... and now, coinciding with a corrective wave off late-June bottom.
The McClellan Oscillator's decidedly positive bias coinciding with wave a off late-June bottom is fading ... badly ... during formation of wave c. The way to the market's upcoming collapse, then, appears paved with misplaced complacency now seasoned with increasing underlying weakness.
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© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.
Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.
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