Update

What else can we say that hasn’t been said? It’s interesting to note that while objective Elliott wave technicians have been open to different counts, the bears have been locked into one in particular. Here, in this tiny area up to 1310, is where the rubber meets the road in our view. The myriad of different counts have converged and tell us that if we’re going to get an end to the bull run from 2009, this is as good a place as any. A good technician never gets hung up on one count though, so all we’re saying is that it’s a good time to be cautious. The price of our spread has not changed very much, despite the fact that the RUT seems to eek out small gains every day. Volume is very low- pathetically low for the beginning of a new year. Short of a QE event, which we don’t expect right now, the market seems to be sitting on the tip of a needle.