Wednesday, May 16, 2012

Market Timing Update (5/16/12)

[EOD] Stocks -
We have another lower low in many indexes today. However, today's down leg offered us the fifth wave of an EDT (bullish) or LDT (bearish).  See Chart 1.

The overnight low in ES touched the first EWP support for a wave 4 (i.e. the lower boundary of the acceleration channel), see Chart 2. The overnight low in ES is still holding but with a thin cushion.

[125 pm] SPX squiggles -
See 2nd chart below.
[825 am] ES update -