BOTTOM LINE: Markets are quite extended to the upside. Even stellar earnings results (so far, AAPL, GS, JPM etc) fail to push the broader market higher. Structures on everything I follow indicate that corrections to the move that began in early October are imminent.
Below is an hourly chart of e-mini S&P500 futures, with my count as of 5 October 2009. While the index is trading about 1% higher from my projected levels, and took slightly longer to get there, I maintain my bearish outlook. My confidence in this call is very high.
This is an hourly chart of DJ EuroSTOXX 50, and the index is basically flat relative to where I thought it would peak. This structure is very tired, and I cannot see how it could rally meaningfully without at least a 5% correction first.
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