Just Marking TIme?

For reasons recently stated (see posting of 8/8/13 for example) the daily chart is now bearish. However, there remains the possibility of another rally from these levels which would fall under the fourth wave contracting triangle idea as discussed in the last daily posting. epicted in the attached chart. If correct it means that one last and most likely short, fifth wave up is required. Keep in mind that any such thrust up would probably complete the TD Sequential countdown which has been stuck on bar #11 since August 2.

This short-term bullish option is enhanced by the composite index (middle pane) failing to make a new low yesterday with the RSI (top pane) and price.

The shortest degree (level I) price pulses I keep (not shown) will turn bullish on a move above 1700.18. At Level II we now have a Y-pulse confirmed complete at the August 2 high. A move above 1700.18 will confirm the Z-pulse is in at yesterday’s low. It would then still take a new high to turn Level II bullish but the upside looks very limited.

Finally … is the market just marking time? This Friday marks a very important Gann timing date. A taste … we have now moved 232 weeks from the 2009 low. Of course 233 is a Fibonacci number. But where is it on the Square of Nine?