Thursday, November 8, 2012

Market Timing Update (11/8/12)

[EOD] Stocks -
SPX closed around (but below) its MA200.
To some extent, the current sell-off resembles the 2011 correction in terms of price patterns. The boxes in Chart 1 indicates these potential fractals.
Despite the outsized sell-off, a 7-wave structure (to date) stands. See Chart 2 (SPX) and Chart 3 (NDX). However, the non-overlapping and deep retrace in NDX is chipping away the assumption of a pullback one day at a time.

[1115am] SPX/NDX update -
Structure approaching potential completion.

[950am] ES/SPX update -
ES bounced off the fib-382 retrace (Chart 1) with the neckline as the overhead resistance (Chart 1). Chart 2 shows the squiggles on SPX. See yesterday's EOD/PS updates for the bigger picture.