In my video over the weekend, I believe I briefly mentioned 1141 being the last pivot from where we closed Friday, to the highs at 1150. The high for the day on the SPX was 1141.05. We were in a tight 5 point trading range today between 1136 and 1141. So far, this seems like consolodation for another move higher. We also had exteremly light volume today. Lightest all year, and nearly as low as what we experienced during the Christmas holidays. Market internals were not that great either.
I'm going to keep my counts the way they are until we break 1141, and perhaps 1150. But for now, I'm sticking with this being a deep Minor Wave 2. Look on the bright side, the higher this wave 2 goes, the more room we have to fall.
1141 is most likely the line in the sand.
Gold has been one step ahead of the stock market in the past few months. Gold started trending down in December while stocks kept going higher. From the highs on Gold last week, I can see a potential impulse down.
Watch for Gold to be a leader do the downside, especially if the US Dollar uptrends.
Here is an updated count on the US Dollar ETF, UUP.
We seem to be in a sideways/flat wave 2. Wave 2's are usually sharp, but in this rare case, it is flat. When wave [iv] does come around, expect for it to be sharper. But we seem to be in the middle of this wave [ii]. We should chop sideways a little more before we fly higher in a wave [iii].
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