Tuesday, November 17, 2009

Tuesday 11/17/09 Market Update

Above is a 1 minute chart of the S&P 500 index. The major indices did close higher but on very light volume. The correction that started yesterday appears to have completed today after the wave became more complex. Upward waves followed but they are looking a bit weak. I expect one more push higher tomorrow, maybe into Thursday, that should end primary wave [2]. In my estimation wave [2] has been a triple zigzag even though there are multiple interpretations of its latest subwaves.

I expect clear impulsive waves moving down after the market finally tops. There should be clear weakness present. Also the general media should not be worried about an overbought stock market at this point. Any slide from this going forward should be seen as a "buying opportunity" by the media and general population. Good news for months to come will fuel the bullishness. Other pessimistic opinions by the general media will provide great doubt for the intermediate term bearish scenario ahead. I am fairly confident that the correct elements are in place for a wave [2] top, but the bullishness of the market has backed off noticeably over the past 45 days or so. So we wait and see.

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