Did someone mention 1932?  Is that why a chill went through the room?  If it looks like 1932 we’re only in 1929, because there has only been one wave of panic selling as compared to the five waves of 1929-1932.  At the moment in the Dow –and broad market — we are in a rally.  Bulls are celebrating like the worst is over.  Is it?  While we are nibbling at lottery tickets the market is making lower highs and lower lows.  Seems we remember Magee saying that was a bear market pattern.  Waves go down, waves rise up.  Until there is a pattern of higher highs and higher lows there is no change of trend.  We view the rally as completely technical.  As you will remember (no?  please pay closer attention) we remarked the day before it started that an upwave was due.  In the current chart note the lengthening waves.  The last downwave was 12 bars down.  The last significant (at this scale) upwave was 6 bars long. What we are watching for is a decisive penetration of the last high at 9616.59.  (Or conversely, a close lower than than 7449.37 basis Dow.) 

The technical question here is:  Is the November low the retest of the October panic low?  Only time will tell.