Equities near the highs

The sell-off did materialise, but it was much smaller than I expected of a fifth wave of the first impulse down. US indices, the Dow and Nasdaq in particular, could be counted as having completed five waves down, as illustrated on the hourly chart of the Dow below.

However, I cannot say that I am very happy with that count. It is not supported by EU indices, which look like corrective "three wave" moves down, and the wave labelled "5", on the Dow, is too short.

Therefore, my position right now is neutral for the short-term. I still expect the market to be substantially weaker in 3 months' time, but if we go on to make a new marginal high, it would fit in well with one of the counts I am following, illustrated below on the daily chart of the EuroSTOXX 50: