Wavespeak Update July 27 2011

Mar 28, 2010
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The indices were absolutely thumped today, adding on to the losing efforts that took place on Monday
and Tuesday. We’re only yhree sessions into the week and all indices already find themselves off a
hefty 3%, once again using a setup to break out as a reason to instead reverse direction. To be sure,
this market has become pretty frustrating. It continually finds a way to avoid making a bold move,
instead opting to remain in any range it can find for as long as it can. This has been the theme for
almost the entire 2011 year, and boy we’re looking forward to something new because this is getting
downright silly.
In recent newsletters, we’ve showed why the pattern is bullish on every time frame, based on absolute
black-and-white impulsive upside movement and corrective downside movement. Yet here we are
heading lower. Current weakness doesn’t change our analysis in any way – yet. But it will if weakness
continues and carries price through our key downside levels. Despite the blatantly apparent setup
otherwise, such a move would tell us that the 2011 downward correction is still in play and that would
mean a move back to 2011 is coming next. What a grind.