I’ll try to follow up in the future with a chart but wherever large 4 ends – perhaps around SP 1,000 or 1,100 or so, then we’ll do projections from there. Right now – for my level of expertise – it’s too early to start projecting fractals of the 5th wave.

I’d love to hear others’ suggestions though.

Both funds are testing critical support levels. I’m a more conservative trader and I want to see if these levels hold.

Whatever happens, there should be a nice impulse move up or down off these critical levels here.

True – today’s action notwithstanding. That volume divergence persists it seems.

There’s EMA support beneath both the S&P and GS (and CAT) and it would be majorly significant if they all broke support. Thursday & Friday will be critical.

If we fail here, it will confirm a nasty bull trap and we should expect a possible swift down-move soon.

As always it is the false break that has the most impact. G Sachs (like the SP500) has had a low volume early Jan break out to the upside …….. failure opens up significant downside potential

As I write the SP500 is testing its Jan 2009 opening level of 902/903. Just having a look !!

Often the higher timeframe dictates the action thanks to the bigger players seeing the strength as a chance to ‘get short again’ which is often the case. It takes a great deal of force to reverse a trend so it is assumed to be dominant until officially reversed.

When you have conflicting signals, you would take a reduced position – if any at all. Might want to move on to another stock(s) until the pattern resolves and price breaks one way or the other.

It would just tell you to be cautious and not get aggressive… and to always check the higher time frame before getting excited.