BEARS NEED A CATALYIST
Recently daily updates are getting boring to write and I guess as well for you to read them.
I have been discussing that there are enough compelling reasons that should lead to a pullback but since price keeps rising with corrective up legs the uptrend from the April 18 low remains if force.
On Sunday I suggested two potential patterns that should conclude the current remarkable advance. The Ending Diagonal idea is no longer valid hence my preferred count going forward presumes that from last Thursday's lod price has to unfold the last Zig Zag up, in which case the current pullback is the wave (B) which will be followed by the last wave (Z) up. (Keep in mind that lately Tuesdays are "always" bullish)
Since neither the up leg form the April 18 low, nor the overall advance form the November low can be counted as impulsive I rule out that the approaching top will conclude the advance from the November 16 low, instead I expect a wave (B) pullback that should not breach the trend line support in force since the November 16 low, for this reason I have suggested a potential target in the range of the 20 dma = 1617 - 1597. (Instead of a downward correction price could unfold a sideways one forming a triangle)
A catalyst is needed in order to modify this market behaviour of buying into a further extension higher therefore maybe tomorrow two key risk events could trigger the overdue pullback: Bernanke testimony before Congress and the FED minutes.
