On January 19 we began a 14 day downwave which convinced chicken little that the sky was falling. It lasted 894.8 points and 8.34%. We now have 24 days of upwave from 2/25/10 and 8.23%. It is too early to tell whether we are going to repeat the surge drift and flush pattern we saw before the rectangle. But it appears that a pattern is being set up — that is surge and drift, but no flush during this upwave.
We don’t see any reason why the Dow shouldn’t break its high. The Qs have broken out and it appears the S&P is doing the same today — even if in a lukewarm way. The upwave which began March 9 last year is intact.