One By One

One by one, markets around the world are giving clear indication that wild-eyed bullishness will soon be over.  Copper, the Aussie dollar, Canadian dollar, and the London FTSE index have shown, in Elliott Wave terms at least, that runaway bull markets are not in the offing.  Each of these markets has violated its respective October 2011 high (some even the December high too), therefore it does not appear that any of these markets is tracing out an impulse wave to the sky.  They are more likely forming complex corrective waves from the 2009 lows which will be completely retraced.

The first indication that something was afoot was in the British pound/Aussie dollar cross as it made a bottom in mid-February.  Its rally since that time has suggested the return of Risk Off.

Yesterday volume came out of the major indices again on the downside.  The Dow, the Russell, and most importantly, the New York Composite (all 8000 stocks of it) broke the March lows.  The NY Composite even broke its October 2011 high.  I will be watching 7596.11, its December high, for a breech.  Doing so would effectively say Game On for the bearish view.

Regardless of all this, I was positioning for a bounce yesterday and we're currently getting one in the futures market.  Only thing is I went flat at the end of the day.  I'll be watching 1378.24.  Above that suggests 1400.  Staying below it keeps the pressure on for major trend line support around 1350 and the March lows of 1340.03.

Trying to take a break, but I really do love what I do.