INDU, SPX, RUT, NDX ewave update
NDX: Yesterday into today looks like a Wave 4 triangle. The futures are looking higher, but still bound by the upper edge. Look for a pop to complete triangle wave d and then drop to complete triangle wave e. Sometime in the early afternoon a swift rally (Wave 5 of Aug '07 rally), maybe to a new 52 week high will complete. This sets up much of the next two weeks as a strong selloff, either bull consolidation or new bear market.
INDU, SPX, and RUT continue a complex sideways bear market correction. The choppiness may hide a triangle or ending diagonal. Since these markets have not challenged their 52 week highs as the NDX did, they are not confirming the new 52 week highs in the NDX. I think these indexes are in a new bear market
Bottom line is a market crash about to accelerate. The mortgage indexes went from 2 to 5 then to 15 new lows in 3 consecutive days. There was hardly a consolidation for the selloff where 12 of 20 indexes were typically making new lows. C, CFC, MER, and JMP continue to get hammered. A vote of no confidence in banking, mortgagge, and finance companies is a vote of no confidence in the overall financial system. Once they go, the rest will fall very quickly.
