The weak follow-through to Friday's rush up at the close indicates we now should accelerate down. The pre-Super Bowl huddle of market options that came from that Friday Pop have now gone the way of the Colts. (Geaux 'Aints!) Today's STU points out that downside momentum is increasing. If this had been a fifth wave down, or a final C wave, momentum should be decreasing. We saw this with the whole Hope Rally, where it started much stronger and faster-moving than it finished. The strongest A/D and Up/down day was last Thursday's big decline. We have actually dropped more so far in 2010 than we did in 2009, which had the deep dive to Sp667. Rather than slow down, the market has just had the strongest down momentum since the Rally started:
The next move should rush by the critical Sp1029 level and break Sp1000. Over in the Dow we rush into the low 9000s. If perchance we get a bounce instead, bringing the boo birds out in force, it simply means this wave (ii) bounce will have one final jink and jive before the dive.
The other arena of interesting action is in bonds. The STU had a lot to say on bonds tonight, particularly minis, and I will work now on a bond prediction.