As for this weeks title - bullish wedge pattern proved the correct interpretation. And the moral is, don't trade against the trend. That fits into rule 1: If it looks like a duck, walks like a duck, and quacks like a duck, it must be a duck. Still, I would not be buying this now and at this level. If you are wrong, there will be a better sell opportunity, if you are right, there will be a better buy opportunity.
* All weekly bearish candles have been negated.
* Bearish divergence on the weekly Slow Stochastic still active, but one more week like this and that too will be negated.
As I have said all along, I still expect us to see substantial new highs, but I have also been expecting a substantial pull back. Thus far, not materializing. Elliot interpretation: This would be the impulsive 3rd wave (ending soon), then the corrective 4th with a large 5th up sometime in the next year.
Conclusion: I don't see it above 233/235 this year and despite everything, still expect a substantial correction before the big rally next year.
60 Min - reversing bear targets (until the become clear again) and focusing on bullish wedge. Friday's high hit two nice targets. Failure to move further could mark that as the intermediate top. Otherwise, nice targets between 230 and 235.
Weekly - I can't find any period in the last 20 years where the Slow % D line of hte slow stochastic has stayed so consistently above or at the 80 line; not even frost years.
OI graphs - they are marking extremes and indicating at least an intermediate top.
Net funds - still room, but high. I think the window dressing at the end of the year may have actually been, take the path of least resistance - push it up and book your unrealized profits at substantial new highs.
