Cloudy, With A Chance Of Diagonals

Well, up until now, I have given the benefit of the doubt to the bulls.  However, that benefit of the doubt is starting to erode.

With the lack of follow-through to the upside, we have been reducing the probability that the bulls can still take us higher one more time before the bigger correction begins.  As of the time of my writing this update, the only path I can maintain for the bullish follow through is via a leading diagonal.  And, as you may already know, I do not view them as strong trading cues.

Yet, the bears are not doing much better, as any potential for a wave i down is also only left to a leading diagonal structure.

So, unfortunately, the market is not providing us with any strong clues regarding the next directional bias of 200+ points.  But, clearly, should we set up a leading diagonal to the downside, and we follow through with a break down below the yellow (b) wave low, then it becomes quite clear that the bears are attempting to wrestle control of this market from the bulls. Until then, I simply do not have enough evidence to turn outright bearish just yet.