Wednesday, 11/30/11 update

Of the three alternate ES/SPX scenarios presented Saturday, the 3rd and most bearish one (near term) has been ruled out by the action so far this week. That leaves the idea of a intermediate term flat in progress since the highs of last May, or a more bullish Major Wave C up off the early October low at 1068.00. In the flat alternate, prices should trend up to the early May highs around 1375 over the next month or so, and then roll over into some serious selling for the C wave of the flat. In the 2nd alternate, a longer term bull trend is in effect which will eventually lead to the area of the 2008 highs.

Alternate #1

Alternate #2