Wednesday, October 12, 2011

Market Timing Update (10/12/11)

[EOD] Stocks -
Today or later this week has the potential for a pullback or a deeper sell-off (see below) as squiggle counts suggest a completed three or five from the low (Chart 1). Chart 1 also highlights potential target areas - around 1180-1200 if the pullback is a small-degree 4th wave and about 1150+/- if it is a B-wave or 2nd-wave. But first, the obvious initial targets are the two unfilled gaps.

Chart 2 refreshes the larger count. If the short term run-up is done, options for the current high are purple A (of (2)-up), red (B)/(2), blue B of (Y)-down, or green 1-up (not shown).

If we get a moderate sell-off to new lows (blue C(Y)-down) to conclude the correction, the bottom could be around the end of October based on time equality. The blue count in Chart 2 shows equal time for blue (Top)(W) and (X)(Y).

[240pm] INDU squiggles -
Here's close-up count of the break out, depending on where one thinks a small-degree 4th wave ended. See [940am] entry for the larger count.

[940am] SPX squiggles -

[820am] ES, DAX update -
see yesterday's EOD update for discussion.