Monday, June 7, 2010

Market continues lower...

...and the premarket gave the bears an opportunity to get in at 1070, which appears to now be the key swing level going forward. Based on price action right now, here are my forecasts:

- Primary Count (I know I have it backwards on the charts): Wave 4 flat (BTW did you notice that the wave 4 hit my correction target of 10 pts?) and we're currently working on wave 5 of minuette wave 1. Price target is 1037-1045. Minuette wave 2 should be about 35 pts and end somewhere in the neighborhood of 1170.

- Alternate Count: Wave 4 zigzag and we're currently working on a subdivided wave 5 with micro wave 3 of subminuette wave 5. Under this scenario price should not touch 1160 before finishing the pattern.

- Bullish Count: All economic woes have been fixed with easy money and the market bottoms somewhere between here and 1040 and then overtakes 1120 turning the charts bullish.

Best of luck!
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