So the market tested the 1160's level but bounced back despite more bad economic news. It seems to me like the market wants to keep going up and the Fed is doing a great job at devaluating the dollar so I think the market will repeat the wave from Feb-April. This means we will probably see 1200 within couple of weeks or maybe even 1219. There is the foreclosure mess on the horizon and maybe sellers will grab on to that as the catalyst to sell after this wave is done. But for now, I think Art Cashing is right on his comments and there is no point in fighting the trend. As long as the market does not impulse down and break 1163, the market will continue in rally mode.
On the Elliott Wave count, I see a possible gap up tomorrow or an impulsive wave up in a 3W within the channel I drew on the chart. I've seen some counts that call these sub-minuette waves part of a W3 Minute wave. There is also the possibility that the market topped and last few minutes today was a W2 and setting up for a W3 sell off. But the MACD and the RSI support higher moves so I am going with the bullish option.
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