Thursday, December 27, 2012

Market Timing Update (12/27/12)

[EOD] Stocks -
SP500 bounced strongly off the prior neckline (Chart 1). This is a decent place to end the pullback (Chart 2 blue count). A retest of today's low remains likely.

[1035am] SPX update -
The key resistance held(see the 820am update). SPX is retesting the prior neckline (Chart 1 to the right). Chart 2 updates the tracking counts which remain the same and Chart 3 the squiggle count.

[820am] ES update -
The overnight advance is now facing potential key near term resistance. A meaningful rebound / even a bottom is likely if such resistance gives way. Otherwise, a retest of the "flash crash" lows is likely. See chart.