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The Acid Tests

US stock market indeces are either approaching or has already achieved their supposedly 5th wave targets.

These are the target ranges and necessary test procedure in order to validate the current 1-2-3-4-5 wavecount interpretation of the weekly bar chart structures which indicate the 1st wave is the longest wave and the 5th wave the shortest.  The diminishing volume as the rally progresses from March 2009 further supports the current wavecount interpretation.

Spx:   img40.imagefra.me/img/img40/6/4/14/aarc/...

Indu:  img40.imagefra.me/img/img40/6/4/14/aarc/...

Compq:  img38.imagefra.me/img/img38/6/4/14/aarc/...

Rut:  img37.imagefra.me/img/img37/6/4/14/aarc/...

As expected since February, the Russell 2000 should be the frontrunner and it did.  It has already achieved the nominal target and is now headed toward the maximum.

For the major sectors:

Banks:  img37.imagefra.me/img/img37/6/4/14/aarc/...

Finance:  img38.imagefra.me/img/img38/6/4/14/aarc/...

SOX:  img40.imagefra.me/img/img40/6/4/14/aarc/...

Trans:  img37.imagefra.me/img/img37/6/4/14/aarc/...

They are practically similar except for the potential wavecount violation by $BKX.  $SOX has a potential truncated 5th down at the bottom in March 2009 that is why it is running the fastest and potentially will run way past the nominal target.

Those are my fishing nets in order to be able to catch the big fish.  And avoid the crocodile.

Have patience.  The markets will decide sooner or later.