Wednesday, December 16, 2009

The back and forth continues...

I guess when the overnight futures take out the previous days' high it makes calling the previous wave structure corrective pretty easy. So much for testing 1100/1103 this morning. Well, we got the bullish tone in the market today, at least until the Fed announcement at 11:15 am PST when the market decided to sell off. It did close once again at key resistance, so we'll see what tomorrow brings. Traditionally, the market reverses the Fed move on the next market day, so if that trend continues we'll be looking at new stock market highs tomorrow, but if we don't....

Key support levels:

- 1108/1112 (currently closed right in the middle)
- 1100/1103 (if this doesn't hold, then there is a VERY high liklihood that the
uptrend is over)
- 1070/1080 (by the time the market gets here we will have a confirmed downtrend in many markets, broken trendlines, so buckle up)

Here are a couple charts for the different counts:

Bullish Count - rally through the end of the year.

Bearish count - begin to break down, but with the possibility of one more poke above the high before we turn down (if it is going to do it tomorrow morning).
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