Monday, August 23, 2010

Market Timing Update (8/23/10 Close)

[9PM Stocks] New low in ES.

[4PM Stocks] The two larger time frame wave counts discussed in the weekend update are tracking today's market action well (updated in Chart 1 and Chart 2).

It's prudent to leave room for the near term bullish (tactical contingency) count. In the SP500 cash index, a nice 5-wave rebound from Friday's low ended at today's high. What followed is a zigzag decline into the close (Chart 3).