DJIA breaks leaving less senior indices behind.

The DJIA broke to a higher high today in what is a clear gap up above the resistance level set by the Oct-Dec run peak.  Same is true for $SPX.X.  At the same time, $COMPX and $NDX.X actually were red all day and neither so far has created a higher high.  So the herd is contemplating options at this point with lots of uncertainty still in place.  Uncertainty is what leads to volatility.

Interestingly, UVXY was slightly green on the day even with the major indices putting in new highs.  So where is this all going?  Well, it is a long shot but I'll toss it out there anyhow simply because it is what I would expect to see if the fed were buying futures in order to prop up stocks and then trying to back out of their trades so they don't get caught red handed only to find that when they leave the market follows even faster.  Maybe EWI was wrong it ins down count.  Maybe it was 3 waves down into red a and then 3 up into red b to a higher high (expanded flat correction which also is the expanding wedge 5th wave).  In this case, the correction would be fast and deep - a motive 5 waves down into C of 2.  It it could get down to around the 61.8 then it could come close to kissing its lower rail (green) while filling that open gap.

Also, commodities could get hit by the falling market (more deflation fears) which would lead to a bottom in GLD.  So maybe UVXY's recent strength is reason enough to keep a close eye on it in the coming days...

Stranger things have happened!