As expected, we made new highs once again today. We also happened to make our high right around the 1160 level. I have mentioned this number a few times, and we finally got to it today. The Dow did not make a new high, and it contiues to be the weakest and lag behind the other indices.
On the smaller time frame, I can count 5 waves up from our triangle break out yesterday.
Now, this 5 waves up looks complete, and this could potentially end wave c, thus it could potentially mark the top of this up move. I think that the 1160 level is a big number. This is a very key fib extension, and a lot of people are watching it closely. If it fails to hold, 1175-1180 may be the next target. But for now, I feel that it may hold.
1150 becomes the number to watch to the down side. If we can break back below 1150, we could see more sellers come in.
The pattern from late 2007 has looked almost similar to what we have just experienced in these past few weeks.
We could easily be sideways for a few days, and then potentially move lower.
Apple seems like it is now in Minor wave 4. As I said a few weeks ago, Apple needed to pullback a little bit in a wave 4 before making its wave 5 peak.
It could still chop around a little more before going higher.
So a lot of mixed signals now again. SPX has been making new highs this week, while the Dow has struggled on each day the SPX has made a new high. If we break 1160 tomorrow, it could be bullish. Watch for the confirmation on the Dow. The current high is around 10730.
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