Although disproportionate dumps at market open noted yesterday largely were recovered, weak relative strength accompanying these opened the door to further selling. Following last Friday's weak open, the same risk was thought possible once Friday's loss subsequently was retraced.
However, relative strength's firming with today's strong recovery raises the prospect that, bottom is in, thus ending wave 4 of (c).
No doubt, today's close registered the same relative strength weakness as occurred prior to those three days noted above, when the market opened with a thud. So, as far as the prospect of further selling, there initially appears a case for fearing the possibility. Particularly given Friday's deep, sell-side relative strength extreme, a nominal new low accompanied by improving relative strength might be thought in order.
However, relative strength's improvement already is being registered with the market's stabilization over the past six days. There appears an increase in buying interest whose presence could be putting a floor under the market.
Relative strength's improvement is further evidenced on a 15-minute time interval. The market appears poised for further gain, with the buy-side of relative strength's range (above 50) well-penetrated and held today.
Further confirmation of an increase in buying interest is evidenced by today's NYSE Advance-Decline differential registering its best since ... drum roll ... wave 3 of (c). So, it appears wave 5 of (c) could be under way.
Moving right along, we have a total lunar eclipse occurring on June 15th, and this will be seen just about everywhere but North America. Now, the present alignment of celestial events might have some observers warning of collapse, but I found a more curious configuration.
First, the duration of totality during tomorrow's eclipse will be the longest since July 2000. Then, the part of the sky in which tomorrow's eclipse will occur is the same as on July 6, 1982, when a total lunar eclipse likewise occurred.
These dates are significant because both were within weeks of major turning points in the market.
There's more coincidence with these two eclipses past found in the present instance, making this moment all the more curious...
June 1st, 2011 saw a partial solar eclipse; on July 1st, 2011 there will be another. The total lunar eclipses of 1982 and 2000 likewise were sandwiched between consecutive, partial solar eclipses.
Anticipating wave 5 of (c) upcoming, upon whose completion a major turn in the market is expected, the present coincidence of celestial events with the same sequence occurring in 1982 and 2000 is worth noting, if only for the sake of curiosity, and a rather remarkable one at that!
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