Tomorrow, I think, is another Fed. day, or are there two. Either way in the next one or two days we should get a Yellen day. That is a day that is good for at least 300 points or so up not because there is a reason, just simple because it is a Yellen day.

The Dow displays the same triangle as we have seen all over the place. The c leg is just a little more complex but we are ready to go. The triangle, if that is what it is, measures about 1000 points so 18400 might be possible ( maybe a Yellen, Draghi, and Poloz day one after the other). The thought alone is disgusting.

As a caution, it should be kept in mind that there is a bearish alternate possibility. It is lurking in the bush;

If there is a triangle. this should pretty well do it. It is still a big if but if it is there it is there. This is the time when either Yellen or Draghi usually do their deus ex machina, maybe they will do it together.

My guess is that the double top level is at about $56.50, which is only two dollars higher than we are presently. It may yet go there, or even higher, but we would exit the stock now with a ten bagger while it is still there.

EW, apart from all the rules and guidelines , should adhere to the aesthetic requirement that the patterns should look good. Earlier this month we had a chart of Citigroup and offered the opinion that the two down legs in respectively 2000 and 2007 might just be parts of one and  the same complex correction. This may be true for the Dow as well which would then make this leg up a wave 5, which is often a wedge. This sure looks like one, both on the larger scale starting at the lows of 2009 and the smaller scale starting this February. Assuming that it is a wedge of sorts it should end before the upper and lower boundary lines intersect, there just isn’t any room left there after. As the upper line rises by about 130 Dow points a month 17360 is roughly as far as it can go, but do not expect it to get there simple because these structures stop well before the theoretical end, the apex.

Greenspan, we were told, owned exclusively T-bills. Bernanke was apparently equally conservative but Yellen owns a lot of stock (about $4mln or so) by way of individual names or ETFs. Most are up by at least 50% or more over the past year and perhaps someday we will hear if there was a conflict of interest. Socialism is nice but capitalism even nicer.