Icarus

Q: If you put five Elliot Wave Technicians in a room, how many wave counts will you get?

A: Forty-six

I made that up, I actually have no clue, but I am willing to bet that it will be a cartesian product...

I am following three different Elliot Wave technicians right now and they each have a different wave count. Actually, they each have several wave counts, all ranked in order of priority. Which begs the question, who is the greater fool, the fool or the one that follows? (Yes - Obi Wan)...

I guess the bigger point is that everyone seems to be getting turned upside down by this phony market which is levitated merely by that lethal combination of Fed money mainlined directly into HFT bots. 

For my part, I am sticking with the rising wedge technical pattern, above. There has clearly been an overthrow, nevertheless the pattern is still more than valid. It's just been radically exceeded by the unprecedented amount of market stimulus.

Another way of looking at it is that the market has been moving inexorably higher, with every pullback of shallower duration. More and more money has been sucked in on low volume - a function of both time and price. In the meantime, the economic fundamentals have continued to deteriorate, such that fewer and fewer stocks are now holding up the market - now only the defensive stocks (consumer non-cyclicals), keeping the overall market levitated. Therefore, what took a long time to rise on low volume, should be a bit faster to fall on high volume, as everyone is trying to get out the same door at the same time...

Speaking of consumer non-cyclicals, below is diaper maker Kimberly Clark, trading like it just came out with a new iPhone.  Looks like Wall Street is really stocking up on adult "incontinence products" ahead of time...Good thinking...
(Their slogan is: "guard your manhood". Apparently if I soil my pants while wearing a diaper, my manhood will be intact. I think I'll wait a while before I try that out...):