What I see at this time - Best I can assign a count is that it is a 4th wave. Possible 1,2.
All over the place -
Believe in the BUNCH! Or Respect the Bunch!
OK, so the futures down 1 and that is it. So much for all the excitement. What happened to the bond vigilantes? I thought they were gonna show up in force after the tax ruling yesterday. IMO the Bernank will be forced to channel some POMO funds to the bond market to keep the yield curve from flattening and thus foretelling another impending crash.
Minis holding support (red) at the 1216 level for now and possibly have a HnS set that targets support at 1200. The channel support (green) is busted. At the top of the chart you see two green TLs narrowing. that is the original wedge for P2. Keeping an eye on the apex where those two lines meet. that can be an event point. Lets see what happens at the 1226 resistance level and if a right shoulder forms (or a B leg before final C down for this corrective).
Concern over the yield curve flattening indicating a top is coming should be taken seriously. As Ten Year Sell Off Accelerates, The Bond World Is Flat from ZH should be read. Looking at the rise in TNX on this daily chart tells you something is up. Some of the divergences on this chart need to be recognized as well.
