For the near term, SPX faces the neckline as resistance (Chart 1) and ES tests the potential wedge breakout line as support (chart 2). On balance, the burden of proof for the near term is on the bulls' shoulder.
[140pm] SPX/INDU update -
The neckline has been significant for some time. See charts.
[805am] ES update -
Month end, post hurricane Sandy.
ES finally regains the "neck-line" support (Chart 1). ES price structure offers a potential end to the Hope Rally point 6 decline (Chart 1 and 2, black). See Target Zone (10/26/12) for additional discussion.
The primary bearish count is an extended wave C down where the current rebound is a small degree wave [b]/ii] of C or [d] of an EDT C. (Chart 2, red)
