The top one is where we are today, the bottom one the prediction a little more than a week ago. As you can see we may only have completed wave 4 and there could be one more move up (down for S&P as this is the inverse). If you were to insert a triangle it is possible that it is done (there would just be a quick thrust to create the double top). However a drop below 80 will tell us that the game is over for the time being. These instruments are worth monitoring as they are canaries in coalmines in that they burn the candle on both ends. Also, psychologically using the inverse is “easier” to read for most participants that, like Pavlov dogs, are accustomed to the “from the bottom left to the upper right”  type of chart.

In the institutional market where your counter-party invariable is that anonymous “the market” there is a certain protocol or guide-line that says that you should always leave something on the table for the next guy/girl. What is really meant is don’t get too greedy.

Looking at the SH, the inverse of the S&P index, it would seem to me that it is 10 to 12, or high time to “leave something on the table”. The count could be a clean 5 waves up with perhaps a few little waves to go. It is a double top and the RSI is reaching the 70% level. Perhaps the light is not yet on green, but it is amber!