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Thursday, November 4, 2010

Yep yep yep yep

This move is too strong for the 5th wave of an ED. The overthrow is way too high. So I no longer favor the count. The market gapped right above the likely terminal where everything would be in a nice proportion.

The P2 count has been invalid for a few days. The Nasdaq 100 made new recovery highs a few weeks ago (but it is a fairly narrow index). The Nasdaq Composite did so yesterday and the Dow Industrials did so today.

Based on this gap and move, I fully expect the SPX to set new recovery highs also before turning down. It is only a couple of points away. That is the next major resistance hurdle.
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