Tuesday, November 2, 2010
Another New High For The Qs Today
The pre-market action this morning has confirmed that yesterday's decline was a 3 wave affair and likely wave (iv) of  of C of (C) up. The upper limit for wave (v) to invalidate the ending diagonal triangle is now 54.31. I don't think 54.31 will be seen, but a new high is definitely probable. Even so, it is a last gasp as the market runs up into the election and Fed news - not exactly a recipe for upside. Absolute Breadth fell to 18.22 yesterday, almost a 3+ year low. This indicates that the rally has become extremely narrow. NYSE new highs minus new lows stood at 181 yesterday, well below the October peak around 400 and the April peak at almost 650. This is typical action for B waves. We will see by January if that proves to be the case.
Posted by R. Craig Pritchard at 8:52 AM