Tired Legs ~ The Risk Averse Alert

Tuesday, December 27, 2011

Tired Legs

Since last Wednesday's indication that, the CME-driven short squeeze of the day before looked to have legs, the S&P 500's subsequent advance, having maintained positive relative strength, now appears to be losing steam...

SPX 5-min

As projected, the market did not run away following last Tuesday's CME goose. With fading relative strength now decidedly negative attempts to take prices higher could be challenged. Thus, one prospective view has in the books the better part of five waves up from last Tuesday's open. The remainder could form over the next few days. Last Wednesday's relative strength low should be taken out during upcoming formation of the fourth wave of five waves up from last Tuesday.

Fast Money
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