Tuesday, May 24, 2011

Market Timing Update (5/24/11)

[EOD]Stocks -
Yesterday's lows in SPX and INDU appear rather vulnerable at the moment as
(1) WLSH, mid-cap and small cap indexes made a lower low today.
(2) The selling into the close has gained traction and continued into after-hours. As of now, the after hours low is just 0.5 point above yesterday's low in ES.

Unless futures get pumped up enough before tomorrow's open.

Tracking counts for the higher time frames remain unchanged (Chart 1).

The purple LD [i]-down appears to be least likely given the wave structure of past 4 days - not an apparent ABC (Chart 2).

So we are probably tracking C-down of a zigzag (blue), (i)-down of an impulse (red), or a more complex corrective structure (green).

Squiggles present options at the moment (Chart 2).

[1240pm]Updated RUT fractal and SPX squiggles -
There's divergence between the weaker small caps and relatively resilient senior indexes. The potential fractal in $RUT is still tracking (Chart 1). Chart 2 gives a squiggle count on SPX.
[Overnight Update] ES -