2014.03.11 Monday Update

Today looks like it completed an ABC correction down with some hourly technicals sufficiently reset and key support levels holding. And the day ended as a Buy On Weakness (BOW) day. All in all, at least one more rally high looks likely. It's possible the last 6+ weeks have been some nested 1-2 waves with a wave 3 of small degree coming as Tony Caldaro suggests. However, the big picture technicals would support at least an intermediate-term correction larger than 5%, Terry Laundry's T Theory Confidence Indicator has a negative divergence (which does not bode well if it sticks) and my discretionary spending analyses suggest a significant top in the next 2 weeks. So, we're likely to either get a small choppy EDT-type rally this week or perhaps a larger unsustainable short-lived spike and collapse. The System would have likely remained short below 1878.05 which was not eclipsed today, so the bears still have hope although I wouldn't be surprised if it was dashed at the open tomorrow. And, I would not be surprised if Dow makes one brief spike above its ATH to clear shorts before forming a false breakout to end the 3-3 of a 3-3-5 flat from January. Good fortune.