Weird Wollie Wednesday waffles from wow! down, to wandering waves - to where?

The stock markets felt like a triangle today - weird! Probably fitting for Weird Wollie Wednesday, as opex is on Friday next week and options premium may as vanish (to options sellers' pockets) while the market tries to decide what to do. I'm still tilting to the idea there's more risk to the downside, whether or not the OEW count takes us into a wave 3 of 3 real soon. The hourly SPX chart indicators look undecided about direction out of this (possibly not valid) triangle, while on the daily the SPX still was pushed down from the 8-day moving average.

Speaking of triangles and triangle traps (traps being the ones that break out in a direction you didn't expect), I get the feeling corporate bonds represented by the ETF, LQD are falling down from one. LQD dropped smartly as did TLT. So perhaps at least Treasury 10-year notes and bonds are starting the wave 3 of c we've been talking about. Hmmm, Bernanke said something this morning about a possible rate rise - has he been following Tony Caldaro (or - ack - this blog)!?! Probably not!! But with the likes of PIMCO with Bill Gross and El-Erian out talking on the topic for some days now, we can't be too surprised. But we can be positioned.

For charts today I decided on the monthly of the $SPX and $RUT. Prices are still under key moving averages. I notice that even Terry Laundry's recent update had some pessimistic notes about the extent of what to look for in early May, after the real rebound from a bottom we should expect lower later this month or March. Just a reminder that the stakes in the big picture are very substantial.