A positive divergence buy signal occurred in the final 1/2 hour for the Qs suggesting that wave (B) up is underway. This rally could be as short as 1 day or as long as all of next week. I show an alternate count above that has wave 5 down completing last Friday and today's low as wave B of a flat correction. If the alternate holds then a sharp wave C rally Monday and possibly into Tuesday would complete wave (B) up. If today was wave 5, then we should expect a 3 wave rally that lasts most of next week.
The fact that the Qs have bottomed in wave (A) at 42.12 above the 40.15 level is a bullish development that likely means that the Qs will bottom in wave (C) around the 40.15 level and not the lower levels of 36.14 to 38.62. If the Qs hit 40 at the end of February I will be a buyer.
The pattern in the Dow and SP500 appears to have completed wave (A) as a 3 wave zigzag decline. If correct, this is a also bullish development since it means that once the correction is over new rally highs will be seen.
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