XMI orthodox high in January was 1187.93. It made a slightly higher high on a 3-wave after that but my key is the orthodox high. The high today thus far is 1186.93, comfortably below the Jan high.
The DJI orthodox and nominal high for January was 10,729.89. The high today was 10,730.95.
So the ABC correction from the Feb 5 low should now be kaput, the bear market rally from Mar, 2009 should now be kaput. Speculative juices are still flowing, witness financials, small-caps, and Nasdaq, but the generals have drawn their line in the sand and will stop the rest of the market from this point forward. Today's action should definitely throw the daily technical composite into unconditional sell (see last night's Addendum). Unconditional sell means don't think, grab the babies, and leave the building. So I am shutting down thinking and am going into passive, relaxed, observer mode. Until either support is broken or the overhead stop is breached I am where I want to be, looking for a bottom at the close Friday.
Speaking of thinking, my stop will be modified:
1) If DJI > 10755 sell 50% stock shorts
2) If XMI>1192 sell 50% stock shorts
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