Only the precious metals have yet to signal BUY/LONG signals, as the predicted fireworks for equities was ignited on Friday. The Real Estate index has been a great front runner and it was again this week, as it refused to join the bearish chop, but rather made a new HIGH. Following closely behind in strength are the tinys, as the RUT also never threatened to signal a short. The laggard at the moment is the Nasdaq, as the QQQs still need to clear the center band line and black dashed line.
I’ve been pointing to the NYMO for several days waiting for an uptick to signal an immediate term buy signal. That came on Friday. And although it never closed below its lower BB, it did close beneath the lower barrier of one of the three different “barriers” I use to monitor it. So, even though the NYMO is only updated post closing, it was obvious that the impulsive move up on Friday would have had a positive effect on the NYMO and thus I posted the buy signal early in the day Friday.
The 30 min SPX chart below now shows a very nice and defined channel. It seems the best bet is that at a minimum it goes for more touch of the upper channel line around 1407ish.
Below are two looks at the bullish count. The first is the big picture daily look at the DOW. As you can see it has been channeling well since the March 2009 bottom. Within the larger channel, small primary wave channels develop. If this count is to hold, then the dark green channel should also be maintained. Below is the daily chart of the disparate leading indexes. Note the strength in the Real Estate group, which has made a higher high! The RUT is right behind. From here, we should see the midline of the BB serve as support and the indexes melt up along the upper band to new highs. 
The bearish count is still very much alive and the Renko charts, both Daily (below) and weekly remain bearish. The daily chart has been a great wave counter and it appears to be indicating there is more downside left to finish this correction. If this count is correct, then we should see a very impulsive drop within the coming days.
