Wednesday, October 3, 2012

Market Timing Update (10/3/12)

[PS/EOD] Triangles -
Here are a couple of corresponding triangles (see 155pm update on ES below) in the SPX cash index. If it plays out, it serves well as a fourth wave triangle. On the other hand, a failed triangle can fail spectacularly.
[155pm/EOD] Stocks -
The wave structure of ES finally cleared up with three tracking counts (Chart 1). Of particular note, given a series of three-wave structures, is a bullish terminal triangle (the green count) or even a regular triangle from the orthodox high. The bearish red count suggests a higher near term high and the bearish black count suggests a near term high is in. Both the red and the blue counts suggest lower lows.

[1010am] SPX squiggles -
For the near term, a potential IHS if yesterday's PM low holds, pointing to potential target area of 1460, which coincides with the upper channel target.