Monday, October 11, 2010

10/11 pre-open

I bought 5% SDS Thursday and 5%% SDS Friday due to double-top I1.  I1 is down this week.
Sunday evening I covered SP futures short due to 30-minute close above 1161.50.
I'm short crude futures and 4% SCO.
I'm long dollar index futures and 5% UUP.
Sunday evening crude and currencies traded up for several hours and began a downtrend.  Crude is now down .45 and dollar index is about flat.
SP futures are up 2 points having been as high as 5. 
The market has to fall 200 DJI points to break it's critical support.  The following charts show the max upside for SPX and Nasdaq, which is wave (iv) top of the April 5-wave down.
SPX max is 1174:

Nasdaq Composite max is 2434:
Since SP futures exceeded the 30-minute M/A envelope Sunday evening I'm supposed to look for the lower envelope as my sell signal.  This lower envelope is 1152.50, which is just above strong support extending down to 1145.  In short, the longer M/As have been moving up as the stock market has been churning and are no longer far away.   If the 30-minute M/A lower envelope is hit then I'll wait for a rally to short again.

1 comment:

  1. Thanks for the wave count update. Very informative and helpful...as usual.

    ReplyDelete