If the DJIA does not close significantly red on Thursday I am going to have to re-think a lot of short term models and admit that the bull is not really dead yet. But with the RSI in peak territory and with Yellen turning her back on further welfare for the rich, I'm going to have to stick with my view that the ending diagonal was a 3rd and the slump into mid October was a 4th and this motive wave that has occurred since then is the real 5th and final wave of the bull market since 2009. Since what I have marked as blue 5 could also have been blue 3, it is still possible that we are working on blue 5 right now which means it could go just a touch higher than the peak of 10-29 but it would count better if we got a declining double top (DDT) as shown such that a line drawn through the tiny DDT in the upper left of the model would touch both peaks of the DDT which I suspect will play out today.
A re-break of the lower rail of the ending diagonal would be bad news for the market for sure, especially if it happened with a gap down or some kind of cliff diving maneuver if it takes place during the trading day.
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