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Are We There Yet?

The plot keeps getting thicker with Italy (and possibly France) joining the fray. 

The chart patterns for SnP500 and Dow Jones become much more muddy in the process and it is almost impossible to arrive at a high-confidence wavecount.

In order to prevent analysis paralysis;  I prefer to use these two patterns that show simple wavecounts and easy to read even a novice EW practitioner will have little trouble interpreting:



It is now obvious that NQ and Transports price structuctural construction are reaching critical mass and an explosion is almost predictable at current forms.

The bad news is that they are diametrically opposed to each other making trading in either to the upside or downside so much more fraught with peril.

I bought NQ again today at 2289.25 when it went into a i-ii-iii-iv-v run down on the 5min chart breaking below yesterday's low (I used the 1-min chart for precision entry into the 5-th of the v-th).  The previous NQ long trailing stop triggered yesterday for small profits.

Also bought some EWI and EWP since they are potential a-b-c Flat Corrections from their Oct/Nov 2009 high.  See my latest Comments for EWI chart illustrations.

One thing that doomers choose to ignore is that no country in the Eurozone is going to default as long as they still have cash in their coffers which is the case since Greece is most likely to get it's $11B lifeline next month and Italy has cash to last for a quarter or two.  The EFSF may not be financially viable right now but in time it can even be leveraged more than 2x to support any and all short-term to medium-term fiscal needs of the troubled countries.