Market Timing Update (4/20/10)

[P.S. Chart 2, ED over-throw after Apple earnings release in the after hours]

SPX- With additional follow through of the rebound today, the rebound (or the first leg of the rebound in terms of Green labeled count discussed below) is most likely over. Based on the analysis below, I expect bearish price action in the short term, the duration and the magnitude of which depends on which count plays out.

All three competing counts are still on the table. Chart 1 offers an update. Note that price action this afternoon most likely suggests an ending diagonal, which is a terminal movement.


[Red-bearish] (ii)-up should be done overnight. Expect (iii)-down to surface tomorrow.

[Blue-ultimately bullish] [b]-up of B of (Z) should be done overnight. Expect [c]-down of B(Z) to surface tomorrow.

[Green-immediately bullish]
1. Please see yesterday's Chart 3 which illustrates the larger wave structure that accommodates this interpretation.

2. (i)-up of [v]-up should be done overnight. Expect (ii)-down of [v]-up to surface tomorrow.

3. Potential targets: [v]=[i] at 1218.46