Thursday, October 18, 2012

Market Timing Update (10/18/12)

[EOD] Stocks
Subjectively speaking, the current sell-off appears to be a 2nd wave pullback, probably ending / ended. Other options remain. See chart.

[210pm] SPX update
Given the deep retrace in NDX, it's prudent to consider the very bullish and very bearish scenarios. On the bullish side, consider a deep wave (2)-down retrace in NDX and a shallow wave (2)-down pullback in SPX about done (green count in chart). Other tracking counts are colored as usual.
[1210pm] SPX/INDU update
Wave 5 (blue) is likely in progress in SPX (Chart 1) with the Dow potentially wedging (Chart 2).

[8am] ES update - 
ES still making well-behaved waves. Wave 4 down (blue) is in progress, or a zigzag rebound (red) just completed. See chart.