After 3 weeks of sideways action, market has setup a very unique opportunity to enter long with a stop below recent lows.
Elliott Wave: Market seems to have completed a 3-3-5 correction in SP500, DJIA, Russell. And in case of Nasdaq, it appears to have completed 5-3-5 correction.
Earnings: Typically, when markets decline into the earnings season, it rises when the earnings start
Euro has held above its October 1, 2012 lows ==> Positive Divergence
Copper has held above its Sept 26, 2012 lows ==> Positive Divergence
Emerging markets have also held above their Sept 26, 2012 lows ==> Positive divergence
The market internals (Advance Decline, Tick, Trin, Volume Weighted NYMO) are strong and some are even showing positive divergences.
Trend is still up
Suddenly a lot of people have started giving weight to a correction possibility ranging from newsletter writers to individuals and from banks to websites. Therefore, with all the above positive developments, its possible that we might not see a significant decline, infact we might be very close to a bottom).
Note: Risk management is the key!!