Monday, June 14, 2010

Monday update

Well, the market opened up green and closed red, so the market has so far responded to over head resistance. My alternate count of a minute wave 2 flat could have happened at today's high, but to be honest, a flat is supposed to be a 3-3-5 structure, and unless I really push the waves around, I get a 5-3-3. So while I would personally like to see this market drop like a rock, I can't forecast it as my primary count.

Instead, looking at the daily chart things could go with a leading diagonal, although with that count we have a truncated 5th wave, which isn't supposed to happen. So here I am with two counts I don't really like.

I've given you the charts, but instead I will focus on support and resistance.

Key support for more upside appears to be 1070-1075 area. Certainly today's high is key resistance for more downside. This week is options expiration, so my gut tells me to expect wild swings with an upward bias. Let's see what tomorrow brings.
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