http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=6&dy=0&id=p83257770514&a=266398464

One of our alert readers examined our nov12 trendline and pointed out that the line was penetrated.  This is the kind of reader we all need.  So we  need to examine the implications of this penetration (pictured above).  We are in the process of suffering the consequences of the penetration.  Even though the penetration has not reached the level of  confirmation. (Magee thought a penetration of 3% was necessary to confirm a trendline break.)  Prices are even sitting on the nov11 trendline.

But it is undeniable that the present trend tends to continue.  And the A wave is continuing.  We thought we might have reached a bottom today and lifted part of our hedge.  Wrong.  We will speak up loudly when we see the buying opportunity.  Keep on keeping on.