Thursday, June 10, 2010


...well it should have been fairly obvious to any of my readers that when the market opened this morning none of the scenarios I laid out yesterday were going to work for today. So in light of today's price action, there are two new scenarios for tomorrow that still work as part of our overall bearish count.

Primary Count: Still in minuette wave 2 but it will top tomorrow a.m. if not already. 1090 is the maximum allowed here and the reversal should be fast and furious.

Secondary Count: Minute wave 2 still has not ended and we're working on a flat correction with a target somewhere between 1115 and 1120. We should see additional follow through strength tomorrow taking out 1090 and backtesting 1090 in an 8-10 pt correction before moving to the target by the end of the week. There are lots of things I don't like about this scenario. First it provides even greater bullish structure to the daily charts along with looking at a weekly reversal to the upside. This would then have the opportunity for further follow through putting the market back in an uptrend. The 15 min 34 SMA should act as very strong support from here on up for this scenario to work.

Best of luck
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