The SPX finally confirmed a new uptrend with it's close above 1227 today. Now, all major indices are in confirmed uptrends.

You have to love markets that totally ignore the technicals. A bearish setup like we had yesterday, in late Oct. created a 2.5%, 2 day drop in the market. Today, we sold off early, became mildly oversold in momentum (see charts), then took off like the bull market that it is. A month ago we couldn't buy a rally, now they can't stop one. I'd say investor psychology has changed quite a bit in the past few weeks.

These short term wave counts, that I have been posting, are a purposely conservative view of the activity in the market. I'd rather have upside surprises, than downside, and nonetheless we get them too. It only goes to show how difficult it is to track, on a daily basis, the 'collective mind' of Wall Street. 

We all make choices during the course of a day in many facits of our lives. So too does Wall Street's 'collective mind'! As an example: this morning the markets started to selloff, the bearish divergences were having an affect. The indices took out yesterdays low, then tuesday low, and then mondays. It looked like we were heading down to test some lower support levels. Between 10:15 and 11:45, the NDX had created a triple bottom on the selling. The SPX had made a double bottom, but it's last decline diverged upward, giving the market a mildly positive divergence. Some buying came in, then some more, by 1:00 the selling had stopped and the buyers took over. The only way one could anticipate a total reversal in sentiment is by watching it unfold. I was net short going into this morning, and when I saw this developing, I swung completely around. It's a bull market!

I've posted two 15 minute charts: NAZ/SPX 111005. What we thought was wave v, was actually part of the multi-day correction wave iv, which bottomed this morning. Wave v of 3 is currently underway. Conservatively speaking, the rallies in this bull market have lasted from 2 - 4 days, paused a day or two, and then started again. So don't get too excited yet.

The NDX has cleared all overhead resistance by surpassing 1638 today, I believe 1665 should offer resistance. The SPX has two EW pivots left: 1234 and 1246. The NAZ only has 2220 in it's path. We should bump into these final resistance levels friday/monday. Let's see what unfolds and review it this weekend. I certainly enjoy bull markets better then bear...