Monday, December 14, 2009

WTI SP Euro Decoupled?

Bound and determined to get the SP to new highs at year end, Santa's Elves have been hard at work Sunday night and before the open. Surely this will set new volume records.  I gave up believing in Santa awhile ago but am rethinking that.
SP

The is even more impressive when you consider that the move up from Dec. 9 1085 has been achieved while Crude has come off $3.00 and the Euro almost .02
click on chart to enlarge
BTW I can count 5 waves down out of the above pattern , which contains an extended -5-. Don't love it though.
 WTI

 click on to enlarge
This count down looks a little more conventional and is likely complete short term or nearly complete , for an "a" down.

The main point here is how long do these markets remain out of sync? Probably not long.
My expectations:  barely new highs on the SP accompanied by consolidations in the Euro and WTI,  followed by a race to oblivion.  Sorry Santa.

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