Promise of continued rally into mid-January on track as market shows it isn't quite ready to crash

Today the equities markets looked like they made an "abc" corrective pullback rather than the prelude to a crash some EW(I) types are looking for. The pop up into the close (some will call a stick save) might be the first move up to complete a "wave (5) of 3" or just a small "b" wave of some level - I can see either possibility, and we'll just have to see if a cyclic pull downward tomorrow makes a lower level such as testing 1122 or 1117 (for the latter case), with the likelihood in any event that the SPX should remain above 1117 for now. Tony Caldaro has made his evening update of his Objective Elliott Wave (and I know Andre is updating to his subscribers. As for me, I'm happy to think that whatever low we may see tomorrow can lead up into year-end and then we may see a more choppy set of moves setting up for "the January high".

Meantime, notice the NYSE advance/decline was up again, supporting this view that the top isn't in yet. But there remains fraying and divergence. The banks were down, also semiconductors, and even the transports were weak. But it's just something to be aware of, as far as the broad indices are concerned. So either play for year-end games, or flatten out and enjoy the holiday season ... And start readying for the strategies we want to trade with in the new year. Currently that means expecting continuation higher into mid-January, even if it becomes choppy. Then a possible sharp drop for a couple of months, and then some real work in terms of whether or not we get higher or lower highs in May and August. That's about the best summary I can make right now. I know that Tony Caldaro is now counting the transports bullishly - so perhaps we'll see them make a large first wave top when the other indices are finally ready to call it a top.

Another sign I'll look forward to seeing in a few weeks will be some real low TRIN readings. Today it was rather high most of the day, as equities weakened, so that's another clue the markets aren't ready to roll over yet.

Meantime we'll also see whether the 50 dma is trouble for gold and oil, and whether the euro can make a higher retrace. And if bond yields will just march higher - as $TNX (10-year note yield) looks poised to do). Whereas the dollar has held the key for a long time, I'm getting the feeling that role will soon be played by interest rates. Meaning, if market rates force the Fed's hand and therefore throw cold water on the asset price rises. Something to keep in mind over the next few weeks.