Tuesday 5/18/10 wrap up

Today was an object lesson in the weakness with the Vindicator as well as with Elliott wave.
I'll start with the Vindicator.  The question is which Vindicator should one trade off: the Buy/Sell line or the V Stoch?  The Buy/Sell line gave two consecutive buy signals in the last few days when it bottomed below 1000 and ticked up, 1st was at the close Friday and 2nd mid-afternoon yesterday.  However, the 30 minute V Stoch rolled over from a reading above75 this morning which is a sell on that Vindicator version.  Looking at the chart and with 20/20 hindsight it's obvious that a reversal from long to short was dictated when the V Stoch rolled over this AM, especially since prices broke the up trendline off yesterday's lows. So perhaps the weakness is in my read and not the instrument.
For tomorrow I will stay in cash until something definitive develops, right now that looks like another long position if the Buy line drops below 1000 accompanied by the V Stoch bottoming. 

 On Elliott wave, it's weakness is that there are always alternate (and contradictory) counts.  With today's action, door #1 from last week is in play, i.e. continued downtrend to new lows from the highs of a few weeks ago.  As for last night's wave count, it has to be modified somewhat to accommodate today's action.  So here they are:
DOOR #2 (BULL MARKET)

DOOR #1 (BEAR MARKET)