Morning JIMHO, whether we have one more rally, or just simply...

Morning J

IMHO, whether we have one more rally, or just simply fall over from here is all up to this AMBAC deal. The DOW rallied 600ish pts when the latest bank bailout was announced last week, and then gave just about all of it back when it hit a snag. Hopefully we'll get a final final shortly.

Meanwhile, this was McHugh's mid day update. Still keeping both options open at this point:

Stocks are getting hit hard Friday morning, which could be the wave c down to complete wave {ii} down we showed in last night's report at the bottom of page 13, but I wanted to mention another pattern that is interesting. It could be that the Industrials are forming an Ascending Bullish Wedge. If you draw a horizontal line across the tops in the DJIA from January 22nd, 2008, that would represent an upside Bullish breakout point. Then if you draw a lineconnecting the January 22nd low and the February 24th low, and extend it through today, we get a rising bottom trendline for this possible ascending triangle. The key level on the downside here is 12,300. The Industrials cannot drop much below 12,300 for this pattern to be occurring. If this is in fact what is going on, it would be a wave {b}, with wave {c} up to wave 2's top coming next, with a likely upside target of 13,000. A rise above 12,775ish would indicate this is what is going on. Should the Industrials drop below 12,300, but remain above 12,200, then the labeling shown Thursday night, where the past three day's decline is wave {ii} down within wave {c} of 2 up, would remain intact. A downside break below 12,200 would likely mean wave 2's top is in, and a crash scenario, wave 3 down has started.