As Axl Rose said, "Where do we go from here"?

If we look at the continued anemic volume of this Bull rally one could reasonably believe the upside here is limited. That's not withstanding the possibility of a higher BLOWOFF top than Friday's action.
So I started thinking about "TYPICAL" actions and possible levels going forward....
What better way than looking at previous "BOTTOMS" and there subsequent moves than with Elliot Wave theory. Note that I removed the 1932-1933 numbers because they skewed the averages with moves of 40%-50%.

By taking the averages it could look something like the chart below:

There is only one problem with this.....

Take a look at the percentage move off the current bottom....31.3% in relation to the other First moves....

Nonetheless nothing ever goes straight up or straight down........

SPY

Inverted H&S pattern coming to completion.....
Expect a breakout to the upside on continued anemic volume.

WHEN IT FAILS and rolls over 750 is a real possibility.

Patience is key here...DO NOT CHASE THIS MOVE HIGHER

Keep your powder dry and get ready to short heavy.

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SPY - 60 day - 60 min

The rollover is topping - will the catalyst be the unemployment and housing numbers today? Or Options expiration tomorrow?

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SPY 10day/10 min mess

Checkout the mess of channel-lines being held and broken as this short-term top "tops". The rollover has been what the media call "choppy". But this could be expected as the Bull/Bear fight rages on. Trading in this environment can be profitable, but you have to keep the overall trend in mind which is still down.

The point I'm trying to make is the "Chop"or price volativity in this market is not being seen as an increase on the VIX or Volativity index. HUH? Could a reason be that EVERYONE is expecting this downturn so the unkown is not so unknown? Remember the VIX is named a Volativity index, but in actuality it is a measure of uncertainty.

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Global market check - China - FXI

Overhead resistance and up on weak volume....

Hmmmm that sounds familiar......

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SPY

Is this the begginning of the rollover back to 800?

Hmmmm, could be...

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DO NOT SEEK THE TREASURE - It's a bushwhack

Libor

Here's a moderate term look at the media buzz favorite Libor

HMMMMM, I wonder if a comparison chart to the market may shed some light?

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XLF

And the Financials are "Supposed to lead us out of the recession"

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XLE

It's hard to believe in a BULL rally with Enegry falling.....

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DOW 30

The Dow 30 finding resistance at the 8087 level where the 61.8% Fibonacci line YTD resides.

In the "must keep an eye on" category is the volume of the move away from this line.

If volume is weak during this retracement give creedence to the bulls and place your long calls in the 9k region.

If volume is strong and the retracement gains momentum to pierce throug the rising EMA's....Place your PUT orders in the 7500 area.

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