The rally I first called on Tuesday http://alphahorn.com/2012/07/24/long-scalp-opportunity/ has continued to play out. The 30 min chart was the first indication that at least a several day bounce was due, then last night the NYMO closing outside its lower BB was additional evidence that a pretty nice pop was imminent. With the large gap up over the red/green indicator and the black dashed mid-band line, a number of the equities moved immediately to BUY/LONG trades, including: SPX, DOW and GOLD, joining Energy and Real Estate on the long side. The Financials are on a BUY alert, which will be confirmed should XLF take out today’s high. The Nasdaq and Rut were weaker than their peers.
It looks like 3 waves up on the SPX chart below, with a subdivided third wave. So after we should see a small correction followed by a small push up there should be a more meaningful correction to around the 1345 pivot. If the bullish count is correct, there will be a pretty explosive move up from there. The bearish count calls for a pretty wicked move down as early as tomorrow.