Tuesday, June 21, 2011
As it turns out, the stock market did move on to new highs, but only in three waves, not five. That could have marked a weak end to the bear market rally, or the other option is that the market has been corrective mode for most of 2011. It is possible that the market is in an expanded flat correction from the 1344 high in Feburary 2011. Under this scenario, the market should ideally retest the SPX 1249 low, although it is not required in this type of correction. If this is the case, then the bear market rally will continue after this correction is over, and likely top in early to mid 2012.