Friday, September 25, 2009
5 Waves Down in the Futures; September 25, 2009
The S&P futures and Nasdaqs sport 5 waves down, but it's not as clean or tidy in the cash markets as the Nasdaqs made new lows from yesterday but the Dow did not. Plus, breadth is flat and the market is forming a "bowl" which according to the prior few selloffs, marks a bottoming structure. With 5 waves down and the EUR/USD looking like it's formed a top, I'm staying short term bearish but cannot conclude what degree of decline we're in right now. The key level is the beginning of the 5 wave drop whichis S&P futures 1076 and 1080 in S&P cash.
I'm bearish and I'm fully short.