Trade the Cycles

Wednesday, February 10, 2010

An SPX Wave 5 Down Move Is Likely To Bottom Early Tomorrow

An SPX (S & P 500, http://bit.ly/i0nsT) Wave 5 down move is likely to bottom early tomorrow 2-11 (watch 1056.74 downside gap from 2-8's open), since SPX did a down up down up
pattern since the mid session cycle high, see the five day intraday candlestick chart at http://bit.ly/3qGxf3, which jives with the slightly bearish 5 day Exxon Mobil (XOM) and modestly bearish 5 day DJUSFN (DJ US Financials) Lead Indicators (Walmart (WMT) points to strength after likely early weakness, jives with the Elliott Wave count), see http://bit.ly/90I4Mz. See SPX's bearish intraday candlestick chart at http://bit.ly/12SpXH.

The one day intraday SPX Wall of Worry (SPX vs VIX) is very bearish, see http://bit.ly/UTZwc.

Market breadth closed modestly negative, which is a bearish indication for early tomorrow 2-11-10, see http://bit.ly/lPIyW.

I'll be looking to day trade SPX (S & P 500, http://bit.ly/i0nsT) long via SPY tomorrow, after likely early weakness, watching any gap created at the open, and, keeping in mind 2-8's downside gap at 1056.74. I might look to day trade SPX ultra short via SDS if there's early strength (watch 1056.74 downside gap from 2-8's open) or only modest early weakness.

SPX (S & P 500, http://bit.ly/i0nsT) probably put in a Monthly Cycle Low at 1044.50 on Friday 2-5-10. A very bullish daily white candle occurred (close above the open), with a very large inverse spike.

Follow me on Twitter (highly recommended), see http://twitter.com/tradethecycles.

Nothing discussed on this Blog is a recommendation, or, should be construed as investment advice.

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posted by Joe Ferrazzano at 1:40 PM

1 Comments:

  • I'm having trouble updating Blogger again today 2-11-10. I need to find another Blogging platform or Hubpages maybe.

    By Blogger Joe Ferrazzano, at 2:30 PM  

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