SHORT TERM: stocks tick up at the open, then head downhill all day.

Today was obviously sell a everything day. Everything on my monitor was in the red; Bonds, Crude, Gold, and Stocks. This morning I was expecting a small pullback, then another short rally to put in a negative RSI divergence short term top. The pullback started, but the rally never came. The long term EW 1438 pivot point provided much more resistance than expected. The previous SPX 1383 pivot point was also met with heavy resistance, as the SPX dropped about 2% over the next few days. Since the low for the techs in the first week of January, and the cyclicals in the second week, this market has been heavily retracing every rally. The OEW medium term trend in the major indices remains up, and I am staying with it and remaining bullish. The market has produced two rallies from the recent lows, and all the major indices have posted new bull market highs in the past week or so. Short term, however, this kind of action seems too choppy to be clearly impulsive. Two rallies can also be considered an ABC in EW terms, which would indicate an irregular correction of some degree. With an overextended cyclical uptrend, and only a minor reversal uptrend in the tech sector, this is a possibility. The sharp rallies and pullbacks give this potential count an increasingly higher probability. The market(s) has been quite volatile since the beginning of the year. A day traders market for sure. For now, the SPX needs to hold current levels, especially mondays low at 1420. Or else, this entire new year rally will appear as an ABC. In the NDX, todays activity has provided a near full retracement of its recent rally, which wasn't much. The NAZ, which has been stronger appears to be simulating the SPX. It's support level is at NAZ 2423. Until these levels are broken substantially, I am remaining bullish medium term. Tonight some important tech companies report earnings, and tomorrow Dec. Durable goods and Dec. New home sales will be reported at 8:30 and 10:00 respectively. Short term momentum is now oversold again, after reaching overbought just yesterday. Bonds closed nearly 3/4 points lower, Crude was off $1.10, and Gold was down $1.40. The SPX/DOW declined a little better than 1.0%, and the NDX/NAZ was 1.35% lower. A down day all around. Best to your trading!

MEDIUM TERM: bullish

LONG TERM: bullish.