Market Update - 9/2/2009

Dow Jones Industrial Average: -29.93 or 0.32% at 9280.67

S&P 500 Index: -3.29 or 0.33% at 994.75

NASDAQ Composite Index: -1.82 or 0.09% at 1967.07

NYSE Internals: 1164 Advance. 1837 Decline.

I was right about what I said yesterday. Wave [5] of iii was going to end somewhere around 99.50 on SPY today. Well, our low for the day was 99.57. From yesterday's post: "The best way to count the waves from the high is i-ii-[1]-[2]-[3]-[4]. We are probably starting [5] down now. A good place for that to end is right around 99.50 on SPY."

The bounce and sideways action that followed, was a typical wave iv. Sideways choppy action all day. We sold of a little bit into the close, so this must be starting wave v. Targets for that is somewhere in between 98-99, which would put the SP500 around 980-990.