Last update expected the market was in the throes of a fourth wave, with the potential for another wave up. Friday's session had the appearance, and the frustrating feel, of a triangle. Most likely this was a triangle B-wave for wave B of 4. The nice thing about triangles is that they almost always appear as the penultimate (second to last) wave in a structure. In other words, when you see a triangle, you should get ready for the thrust out of the triangle to be the end of a larger wave form, meaning it will ultimately reverse.
I've prepared a lot of charts for the weekend, so let's get right to them. Let's start with the SPX 2-minute chart and build from there:
No change to the SPX 30-minute chart:
And the SPX 2-hour chart. Note the uptrend from the October lows has broken, and that this was a three-point validated trend line, which means that unless bulls can reclaim it directly, this break has the potential to be significant and meaningful:
Next, let's take a look at INDU in detail (continued, next page)