The bulls couldn't hold it together and boy did the selling start when 1100 was cut like a hot knife through butter. The pattern right now fits two ways:
1 - primary wave 2 top is in with a failed wave 5. We have a number of non-confirmed new highs in other sectors and indices: wilshire, russel2000, financials, and energy. We finished our wave 1 down and are in the process of putting in a wave 2, and this is very important, SHOULD BE VERY SHALLOW!!! 50% tops and only to test the breakdown at 1100.
2 - our first wave 'A' finished and we are in a wave 'B' that should bottom somewhere in the neighborhood of 1080.
The dollar continues to bounce around. Whichever way it breaks will be our answer. I don't expect any fireworks tomorrow with opex, but some back and forth with a slight upwards bias. A solid break of today's low would change that picture and could catch a lot of bulls and bears off guard.
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