Thursday could get interesting

Thursday could get interesting.

The market continued the rally today, extending gains from yesterday.  Our 4 hr chart score from yesterday was the fuel, and the good housing news was the match that lit it off.

Yesterday, the 4-hour score was at 57.  For reference, the baseline for a wave bottom is 15 and a score above 200 would indicate a wave top.  So, in the range of the nominal scores, it was fairly low.  Hence the green color.  Note that the 4-hour score went back up to 75 today.  Also note that the RumWave score also increased, returning to the orange color with a score of 296.  The Daily was the only score that decreased.  All that being said, I just don't think the market is ready to start a sizable upswing.  There are lots of opportunities tomorrow for the market to be disappointed.  Coupled with the knowledge that the RumWave is predicting further declines I'm expecting a move lower tomorrow.

4 Hr Chart

The 4-hour shows a bullish cross on the slow stochastic.  It is interesting , but note what was happening on the 9th of May on the chart... same bullish cross and we continued downhill for a while.

Daily Chart

The Daily Chart is not extraordinarily bearish or bullish here.. just kind of in the middle.  But, again note the action around 9 May.  The slow stochastic and trend quality indicator looked about the same, and we went downhill.

The bottom line is that despite the last couple days, the evidence points to a further decline.  We'll see how it goes.  I'm still HOLDING my 3x inverse DJIA ETF.