Wednesday, December 8, 2010

Market Timing Update (12/8/10)

[1022pm] After hours futures - UP
ES leading the charge, YM and NQ not too far behind.

[EOD] Chart 1 shows the larger count, with green being bullish and black and red being bearish. SPX has been stronger than INDU and COMPQ today.

The high volume sell-off yesterday and the choppy rebound today along with the larger wave structure favor further weakness, objectively speaking. Policy support counterbalances.

Chart 2 offers a squiggle count.

On the bearish side, black wave (b) of [ii] can take on complex forms. So we'll expect a sideways consolidation until the market breaks down.

The red count represents the most accelerated bearish count.

There's a chance that a truncated zigzag was complete this morning. In that case, the rebound into the close is an (x) wave under the bearish interpretation (see the green count).

On the bullish side, the next advance to new highs has started with either nested 1s2s (black) or a truncated wave [ii]-down (green) . See Chart 2 for an initial count.

[Real time entries] during the day session are archived at MTU Real Time.