Tuesday, October 26, 2010

Market Timing Update (10/26/10 Close)

[4pm EOD update] Interesting movements take place outside of stocks today.

The USD is rebounding, keeping the possibility an bullish LD open for the moment. A close alternative is a fourth wave triangle, which is bearish for the dollar near term and likely longer term too.
The VIX and interest rates are waving in ways consistent with a trend change.

Two potential EDs are tracking actions in stocks. At this juncture, it also makes sense to leave room for the possibility that minor wave 3 since the July low per a bullish count has topped somewhere recently. Note that the decline from the recent high still appears corrective at the moment.

[220pm] SPX count -