Friday, October 1, 2010

Major Top?

Ok, I've only put up a couple of daily charts here, because we have in the making (finally) the top of minor wave 2 yesterday.

Confirmation will come with a daily close below the daily 89 SMA. Significant support is comes in at 1095/1100, which will likely be where this SMA is at the time price gets to this level. I would anticipate that would be a minuette wave 1.

Now, this chart I've used in the past to identify times when the market is going to accelerate to the downside. It has given us a couple of false signals over the last few months. Yesterday, it gave us another signal. I believe the take away from this is that the false signals came after steep corrections.

Look for some strength this morning as we work on a subminuette wave 2.

Best of luck!
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