The new all time high in stocks is a hard pill to swallow - even with a stiff drink!

I am still convinced that this market is topping out a multi-generational bull market.
The series of five wave patterns off the low in 2009 ( 6 degrees of fifth waves and counting! )
is the tip of the continent sized iceberg.

I was stupid to believe that the market could not possibly get more feverish than the January high.
Boy was I wrong!

But, there are indicators flashing red all over the place these days!

Here's just a few:

Over the past month the market has registered 15 separate Hindenburg signals.
That is more than the final month at the top of the 2000 dot com bubble, and the 2007 top.

The market is overvalued at an extreme never seen before in human history.

And there is no single measure of financial health on the individual level,
the corporate level,
or the government level,
that is not blown completely out of the water.
Simply put;
We are in the worst shape of our lives, at exactly the worst time in history.
And we are going to pay big time!

Back to the wave count.
The market may have made a new high.
But this is still a fifth wave by every measure.
And in my book,
it is the very end of a fifth wave.

Needless to say, I am more bearish than ever before.

Here's the latest wave counts:


DOW JONES INDUSTRIALS


1 hr.

4 Hours

Daily


It is one of those moments again where market internals are seriously unfavorable,
but the market just brushes it off like it's no thing!

Not all momentum divergences call the top of the market.
But all market tops are preceded by a momentum divergence.
Like the one evident on the daily chart for the last few months.

As the market approaches the end of another possible Elliott wave pattern in wave 'v' of (c) of [v].
I am obliged by join the dots again,
and point out that the market has very little upside momentum.
And the new all time high was met with little more than a sigh!
It really feels like the market is burnt out at the end of a fifth wave.

The short term count shows the possibility for another rise towards the 27000 area in wave '5' grey.
Lets see if the fed ignites a little feel good burst to get us there.

Tomorrow;
Watch for wave '4' to complete and wave '5' to create another new high.
Wave '4' must not break 26138 the wave '1' high.