As this is our first post of the year, we wanted to wish everybody a Happy New Year, and we hope your year will go much better than the first week in the markets as we’re sure everybody is more than aware by now at what cross roads the market currently is. Next week will be very interesting.
However, and unfortunately, the potential bull-flag patterns that we saw forming (see here and here) never materialized as price clearly broke below support last week, invalidating that setup. 🙁 In addition, although the December 31 trading interval was close, as the SPX topped at 2082 on 12/29 and has dropped 160p since, it didn’t provide the turn we anticipated either (click here). 🙁
We are first to admit our mistakes, and these 3 posts and analyses of the market were surely not of the correctness and level of insight people have come to expect from us. As such we want to provide everybody with a free copy of our weekend update. Please see link below. ENJOY!!
Please note that the wave count provided in our update is one of several possible scenarios at this current juncture, but we wanted to focus on the one we believe is the most likely for now. IF the market breaks below the 2014 August low all bets are off and we must change to a bear-market count. That simple. For now the market has not crossed that bridge, so we keep it on the back burner for now.