Thursday, February 12, 2009
5 Waves Down, Now a Correction; Feb. 12, 2009
The market dropped in a nice 5 waves from the highs but hit a wall late today with another garbage government plan. However the wave count shows that it's just a C wave in a "flat correction", which ended right at the previous 4th wave extreme. I don't expect this rally to continue much at all. Ultimately 873 in the S&P futures must not be exceeded, but a strong break of 840 would warrant caution. The market counts to be in a large 3rd wave right now, so if that's correct then this market should charge lower very very soon. Any further strength for a day or more might call that larger count into question. First significant resistance is the 840 area and ultimately, 873 is the ultimate breaking point. But I don't expect that level to be tested any time soon.
I expect a flat or down market tomorrow.