Market Update - 9/3/2009

Dow Jones Industrial Average: +63.94 or 0.69% at 9344.61

S&P 500 Index: +8.49 or 0.85% at 1003.24

NASDAQ Composite Index: +16.13 or 0.82% at 1983.20

NYSE Internals: 2330 Advance. 690 Decline.

Another boring sideways day, atleast until the end when the market shot up nearly 60 points on the Dow.

We might have completed a complex wave 4 of Minute 1, which unfolded as an abc-x-abc wave. Which would mean we should be down for a good part of tomorrow. Perhaps hitting the 980 area on the SPX.

The alternate count is that the drop we had this morning back to the 992 area on the SPX was a truncated 5th wave of Minute wave 1. Which means we are starting Minute wave 2 up now. If that is the case, then my targets for Minute Wave 2 is around the 1014-1018 area of resistance on the SPX.

The VIX seems to be just completing wave iv of Minute 1, it has retraced just about 50%. If VIX is going to start wave v up tomorrow, it should end somewhere between 29.25 and 30.