According to those several technical measures yet still confirming a "rising wedge" off late-June bottom — this ending the market's counter-trend rally since March '09 — the time is about one minute to midnight. Just how rapid might be the market's subsequent fall is impossible to say, even were this presumed Elliott wave form destined to be confirmed in hindsight.
Yet a most reasonable wonder right now is whether the "flash crash" of May 6, 2010 might prove to have been a yellow, flashing signal, warning investors, "Bridge Out Ahead." What if "stop loss" orders today only all the more become so much false security to those many more sanguine interests who largely disregard that day's most practical lesson, and this even with contempt for analysts possessing more than a fair sense of the history of money and investing?
No doubt, you have seen for yourself: divergence upon divergence galore ... while the relentless crush for capital drives asking prices higher, that diminishing long interest might still meet the capital needs of those bankrupt interests whose demand for suckers cannot possibly be satisfied indefinitely...
That's the [diminishing] volume story coinciding with formation of wave c of 5 since late-day Friday, January 28th ... and, indeed, the entire duration of the market's rally off March '09 bottom.
For months on end a wealth of technical evidence consistently has been supporting an outlook that, eventually some moment would arrive crushing illusion the Great Greenspan Bubble is contained. Prospect that, now is the moment was but bolstered today. All technical fronts only further confirm this possibility.
Yet, again, time is a most precious commodity, which judging by RSI leaves it in precarious short supply presently. Well enough is prospect that, the coming drive lower could be extraordinarily intense from start to finish. Very much sill living is possibility that, 25% could be wacked from the market in a heartbeat.
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