A very choppy week we've had as the market finally put in a new high, but has pulled back since then. It looks like it's just burning time to setup a big squeeze up from some kind of news event or other trigger. Most likely next week will be a big rally week, but I don't know how high it's going to go? Maybe it makes it up to 7100-7200 instead of 7200-7300? I only can say that I'm expecting a strong rally up of a few hundred points before we get a good pullback into mid-February.
Basically, we need to see a big stop run on the bears, once that is done we can get a nice pullback, which could easily retest the November lows, if not deeper? I'm likely this more relaxed posting of once or twice a week as I'm not a day trader and doing daily posts is just not needed currently. Maybe at some I'll post more but for now once a week is all that is needed. Let's look at the likely wave count now...
As you can see the chart above the market is setup for a massive squeeze... "if" the wave count is correct? Of course I could be totally wrong it, but I'm still staying long and will hang in there to see what happens. The move should be a powerful squeeze that by the 15th-20th all the waves should be complete to end Large Wave 5, and that will setup a very nasty drop into mid-February. Nothing more to add.
Have a great weekend.
