Yesterday definitely marked the top of wave [a] of Y of (B), and now we are in wave [b] of Y of (B) which should pull the Qs down to 45.05 to 44.60. Prices topped yesterday right in the cited resistance zone of 45.82 to 45.92 at 45.85 respecting the January 5 day opening range resistance.
By the guideline of alternation we would expect wave [b] of Y to be a sharp decline, probably a zigzag, to alternate with the wave [b] of W triangle. Afterwards we will either retest yesterday's high or shoot up to the January high before rolling over.
I would hold off on new short positions until next week. I would also hold short term long positions until we see wave [c] up. If you plan to trade on the short side during wave (C) down, be prepared to exit at predetermined targets. I think the whole affair will be a sharp but quick decline to set us up for wave [C] of x up.
Time is running out for the P3ers. If the mother of all 3rd waves doesn't get going soon, the shorts will be scrambling. The large speculators and commercials are building long positions, and I think that's the way we should be thinking too.
CISG broke out of a nice double bottom base today with an advance of 9.94%. I bought it Monday as it broke out above a low handle but above the recent downtrend line. Again, this is the type of action that doesn't fit with the P3 hypothesis.
Cabot has now called the market in an uptrend based on the Cabot Tides. I think we may see a whipsaw here with the IBD and Cabot's calls, but that's why it's prudent to wait for additional confirmation. So far, there has not been a confirmation of either call.