Monday, January 18, 2010

Looking for a wave 2 top tomorrow...

Wow, Friday's move down was awesome to watch as the bulls just couldn't get it going any higher. Since we now have an impulsive move down that took out the prior low during a key timing window (200% of the wave W in time), then I'll go ahead and count this as a wave 1 (I'll leave in the /a for now as the bears still need to take it below 1110 and 1090 before we get confirmation. If this is indeed a wave 3 coming that should be no problem at all.

Key resistance comes in at 1141/42. I'll be looking to add Feb/Mar options tomorrow (FAZ calls, QID calls, xlf puts, iwm puts).

Best of luck!
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