From the Hurst point of view, the jury is still out concerning whether this market is bullish or bearish. As Cash pointed out last week, many indices put in left-translated peaks on the 5-week cycle and put in lows that point to a lower 10-week low.
The $NYA and $RUT *may* now follow suit and put in left-translated peaks for the 10-week cycle. They put in right-translated peaks on the 5-week. Until these sectors either put in a lower high or a higher high, we simply won't know for sure.
On this basis, we can trade long with tight stops--and a keen awareness that sigma el could be changing anytime now. The market's behavior in January was anything but a clear bullish signal. Much more consistent with a market top than a major cycle low preparing to launch to new highs. We did see several indices breaking out, however, and so new highs remains a possibility.
BB
