Tuesday, November 3, 2009

Tuesday 11/3/09 Market Update

The S&P 500 and Dow Jones Industrial averages remained almost unchanged today. 1 minute charts of the S&P 500 and Dow are shown above. Upward impulsive waves are visible, but they are forming a larger, choppier pattern. What that pattern is remains to be seen. In my estimation, prices will break out and move higher in the short term to complete some sort of wave [ii] correction as mentioned yesterday, probably a zigzag pattern.

Tomorrow at 2:15 EST is the Fed statement. What happens after that point I do not know but it could be dramatic.

Above is a 5 minute bar chart of the Dow Jones Transportation index. It moved up dramatically today clearly changing the direction of the trend for now. The 'a' wave of a zigzag may have unfolded here.

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