Market Update - 11/2/2009

Dow Jones Industrial Average: +76.71 or 0.79% at 9787.44

S&P 500 Index: +6.69 or 0.65% at 1042.88

NASDAQ Composite Index: +4.09 or 0.20% at 2049.20

NYSE Internals: 1629 Advance. 1417 Decline.

Minute wave 1 completed at 1029.38 today. The target was between 1020-1030. We hit the up side of that range and bounced up.

We should now we starting a Minute wave 2 bounce up. The target for this is somewhere around 1055-1065 on the SPX. That zone is the 38.2% - 50% fib retracement of the move down so far. Wave 2 is expected to be an ABC corrective move.

We should finish wave 2 by the end of the week, before starting another downtrend with Minute wave 3. The key will be watching the market internals such as Advance/Decline for the bounce up. We have to make sure they are not impulsing up. The wave structures also have to look choppy for it to be a corrective move. So far so good...

US Dollar was flat. Crude Oil and Gold were both up. VIX was down nearly 3% Industrials led to the upside.