Once again, I find myself drawn to the 1929 playbook. Although it was just the beginning of an extended downdraft, there were some vicious bear market rallies along the way. In the current financial meltdown, we also got the sharp two day rally, followed by retest of the lows. If we compare current technical levels to 1929, October 10 would be as waves (iii) and terminal wave (v – 3) should be imminent.

The banter about the Japanese yen strength has reached a crescendo, and it seems there is government intervention as we speak. The yen is off -1.1% overnight, and index futures have lifted a solid +3% already.

Has the S&p 500 completed the third wave lower? Although I have maintained a slightly different wave count, I am now satisfied that sub wave v / 3 has completed as the symmetrical triangle formed on daily. The structure was filled with several bull and bear flags (a-b-c retraces) and volatility one should expect from a wave 4 – SHARP. Could this be the perfect opportunity to expect a tradeable “V” spike to retest the 200 moving average as overhead resistance?

A wolfewave pattern setup into the close yesterday. Technically, the lower end of symmetrical triangle started on October 10 was breached yesterday, with a last minute “V” spike attempting to keep investor worries at bay. Despite that, the markets have tipped their hat in the next directional impulse.

how many talking heads will be reminding the public about this scenario over the weekend?