Intraday reversal spells trouble for the markets.

In short, it's very possible if not likely that the bull market since 2009 is over.  I could still be 1 wave short on this count but the wave action looks very weak so I think the odds favor more selling tomorrow and into next week that confirms the new bear market has started.  A big indicator will be a 500+ single day move downward on the DJIA.

In fact, I posted earlier today looking for a reversal right at the exact top, having counted 5 completed waves up. Below left is what I modeled in that post, below right showed that the index began selling off very soon afterward.  In addition, it broke down through the support trend line of the rally since early August.  In that post I wrote (yellow highlight added just now),"After an extended 3rd, the 5th is often the same length as the 1st.  So we are still a bit shy of that even though 5 waves could be possibly counted from the bottom of the 4th.... If we don't get an AM reversal today then I will be expecting that [ed: meaning that the 5th wave would end up being as long as the 1st wave] to happen before the big selling begins.  But its coming soon IMO.  Days not weeks."

Here is the close up of the reversal which did in fact begin in the AM:

It was the AM reversal which should have the long gamblers worried.  Morning reversals are a sign of weakness and in fact desperation. The old pop and drop is like a tired fish taking out a bit of line but then quickly tiring on the drag and getting reeled in even closer to the boat.

Tomorrow will be quite telling.  A fall below ~17010 will strongly suggest that the trend reversal is now playing out.  There are other possible counts but I think they are low enough probability as to discount them for now.  A gap down in the morning would be another bad sign for longs.

Folks, this margin debt driven stock market is going to fall even faster and harder than it did in late 2008-early 2009.  Everyone has done everything in their power to pump the Ponzi but now, as Bill Gross stated, the animal spirits are no longer there.  Another way of saying this is that there are no more greater fools to pass the worthless stocks to.  The trading volume is very low.  There is in fact no way this ends well.