Last update (December 18) warned that it was "getting hairy out there" and included this:
6035 can no longer be the bottom of wave C of a triangle. That low is either wave (a) of said C wave, wave a of a b/2 correction to the prior leg up, or a NESTED WAVE 1 down. In other words, bulls should be very cautious on a sustained breakdown of the blue "alt: a/1" low.
As it turned out, bulls did need to be very cautious and the nested wave 1 down appears to have been the reality, given the incredible speed of the decline after the breakdown of the blue alt. a/1 low.
The NYA chart I published then showed how the rally could be over if the final wave had been a diagonal, so let's update that chart now:
NYA again:
INDU's chart contained a warning about the black trend line, and INDU remains below it, having so far backtested it and failed to claw back above:
Finally, SPX's chart is intended to help cut through the noise:
In conclusion, it is indeed possible that the bull market has ended, but it's very much up in the air yet and not a forgone conclusion. So, bulls should be very, very cautious, but they're not dead by any means yet. The charts above will help with determining where the market heads from here. Trade safe.
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