Thursday, March 24, 2011

Market Timing Update (3/24/11)

[EOD] Stocks -
It has been a catch-up day for the high beta indexes. Now we have w1/w4 overlap across domestic indexes, and so has the London FTSE100.

This has increased the odds, but delivers no confirmation, that the recent sell-off is corrective. The bearish expanding leading diagonal down and the [i]/[ii]/(i)/(ii) setup are still on the table but are of lower likelihood. Odds appear to favor a complex correction or an advance to new highs.

That said, a pullback is likely. It's possible that the current high is the end of wave [x]-up or wave [i]-up, as illustrated by the squiggle count on the Dow futures.

[8am] Overnight update -
London FTSE100 index delivered an overlap of a potential w1/w4 set up. German DAX is about 2.5% away from doing so.

Similar overlap is now seen in SPX, INDU, NDX and RUT futures. On the potentially bearish side, is that a small degree triangle overnight?


blog comments powered by Disqus