Wednesday, October 13, 2010

10/13 pre-open

Focused particularly on Nasdaq Composite 2434, but also SPX 1174.  These are wave (iv) of 1 of the 5 wave down from April and are important resistance.  DJI 5-minute, 370-unit M/A starts off today at 10,972.  If tested I expect support to hold 40 points into it for a bounce.
It's important to get the wave count from yesterday's cash session correct in order to call the 5 wave up from 9/23 complete, and also the 5 wave up from 8/25 complete.  If the 5 wave from yesterday's low is complete then the above are complete as well as the double-zigzag (Y wave) as posted yesterday.  I was wrong in counting yesterday's rally a 5-wave.  Here is the count from yesterday's low
in the cash market:
Here is SP futures which complete wave (v) overnight:
I'm still short crude, which is still in the process of forming what I expect to be a triangle.
I'm still long dollar index with a stop 77.09.

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