Back and forth...

What a day. We got the bulls to close the gap and then some with a very tight range once the market opened. The bulls were unable to close it above 1103. 1110 is the next key resistance area (left shoulder pivot). From the look in the action we have one of the following patterns in order of preference:


- Wave 4 flat with a 5th wave tomorrow ending somewhere between 1107-1112 to finish off a running flat and the bear market resumes (the bear part of the chart is not shown).
- Wave 4 flat with a 5th wave tomorrow ending somewhere between 1107-1112 to finish wave A with a wave B testing 1100 before going to new market highs.


- Wave 4 triangle and a failed 5th wave. Price action will break 1100 in the first 30 mins and closes the gap and then some.

So basically, I'm saying there is a very low risk short entry coming up tomorrow that will likely get us 10 points and maybe a whole lot more. At the same type a sell stop below 1100 tomorrow is also a good entry.