Wednesday, October 2, 2013

Market Timing Update (10/2/13)

[EOD] Stocks -
Stocks attempted to rebound further but the market appears tired for the moment. Chart 1 and 2 tracks SP500 and its squiggles.

Budget related event risks (both up and down) are becoming more important as partial government shut-down drags on. A resolution would likely provide fuel for an upward extension, lack of which would likely test the market's patience.

A new high in NDX today meets the minimum requirement for a top from a wave structure perspective (Chart 3 and 4). However, MID and RUT are not confirming. Let's see if NDX (as well as other benchmark indexes) can manage extension.

[1035am] SPX update -
support at the gray trend line for now. see charts.

[640am] ES update -
Overnight reaction is likely a reaction at the prior neckline once again and at fib (Chart 1). Squiggles (Chart 2) tracking a double three up (red) or "impulse (LD)" up with retrace as 2/B.