In our last update on COMP [see: Oct 28 Update] we pointed to 5124 as the next likely turning point.Sure enough, 4 sessions later COMP reached 5124 and…stopped.  Thanks to DX breaking out, it spent the next week criss-crossing 5124.  Finally, on Nov 9, it began a slide down to 4908 — a 4.2% drop.

In an unrigged market, there would have been more downside.  But, as we’ve seen countless times, COMP holds a special place in the hearts of market riggers.  Well, at least where their hearts would be if — you know — they had them.

continued for members…For a while, it appeared that COMP would hold at the red neckline of the just completed H&S Pattern.  It gapped through it, though, and tested the purple one instead. At this point, it actually slipped below the SMA100 and SMA200 — which set off all kinds of alarms.

The PPT quickly went to work, and made sure it not only bounced back to its former high, but beyond.Now, the red rising wedge hasn’t gone away.  In fact, Oct 28’s rally backtested it yet again.  So, the bears have that going for them.

But, to rebound (at not even the .618) and make new highs has to be considered bullish.  Disregard the fact that it’s manipulated.  The point is we have higher highs and higher lows.

I also feel obliged to adjust the big white channel rising from 2009.  Before, I had set the highs against its top.  In the chart below, I positioned it by using setting the midline at the Aug 24 lows.  This obviously leaves more room at the top for further gains — with the bullish utopian wet dream of the 1.618 (5812) at the end of the year.

I know, the idea of a 13% gain in the next month is nonsense – especially given that Yellen is supposed to burst some bubbles in a couple of weeks.  If fundamentals mattered at all, I’d give it about a 1% chance of happening.

But, on days like today when the “market” rises 2% on the words of a weaselly windbag with a wad of worthless wampum at his disposal, it doesn’t seem all that outrageous.  Another day like today and COMP would be at new all-time highs.

If it can’t make the leap, then there’s plenty of downside ahead: the red .618 at 4872, the white channel midline at 4500, etc.  But, that’s not the way it’s shaping up.

Stay tuned.