Yesterday's mention of evidence that, back in March was indicating increased risk of market weakness finds another technical measure likewise conferring...
Relative strength on the NYSE Bullish Percent Index (below 30) once again is warning that, a further bout of selling could be in store, much is it consistently has similarly warned on several occasions since March '09 bottom.
More telling here, though, is how the Bullish Percent Index, itself, is confirming formation of a fourth wave of five waves up from late-June 2010 bottom. Increasing underlying weakness registering at higher lows in the NYSE Composite index since December 2010 bolsters the Elliott wave count made necessary once February 2011 peak proved not to have ended a "rising wedge" off late-June 2010 bottom.
Judging, too, by the Bullish Percent Index's present position, the end of wave 4 of (c) appears nearly at hand. One final turn lower in the market probably will do it.
The question then turns to wave 5 of (c), slated to end the market's counter-trend rally off March '09 bottom. There is ample reason to believe this final advance could be rather tepid and, indeed, could fail to exceed May 1st peak.
On one point I might disagree with Steinberg. There is one thing Bernanke and Geithner can do. Take the next trillion and buy a fleet of Pope-mobiles. Many a legislatively sheltered criminal probably will be needing the added protection (and many, many prayers no longer backed by taxpayers).
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