Monday, August 30, 2010

Quick update

Sorry for the lack of a weekend post, but we were swamped with soccer seeding tournaments, high school football, and a Boy Scout Court of Honor. So, here are my quick thoughts before the market opens...

The main bear count had to be shelved on Friday as the market reversed on a retest of the lows on Friday. This was the key buying area that I pointed out last week, and the buyers certainly were there in mass. The move Friday should not get much above 1070 if the bear is going to continue. Any higher, and it puts my next bear count into play, which this sell off was all part of a wave B, and we are now entering a wave C that will take out the highs 1120 highs and possibly the April highs.

We should get some kind of pull back off of the 1070 area. In fact, the futures tested the 1070 area last night have already pulled back 10pts. The bulls should be able to keep this in the 1055/1060 area for a wave 2. If not, then we may see some very intense selling.

Best of luck!
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