Market Update - 12/22/2009

Dow Jones Industrial Average: +50.79 or 0.49% at 10464.93
S&P 500 Index: +3.97 or 0.36% at 1118.02
NASDAQ Composite Index: +15.01 or 0.67% at 2252.67
NYSE Internals: 1897 Advance. 1131 Decline.
US Dollar: +0.24(0.31%) at 78.660 | Crude Oil: +0.42(0.57%) at 74.14
Gold: -11.30(1.03%) at 1084.5 | VIX: -0.95(4.64%) at 19.54

Markets bounce after worst than expected GDP, better than expected Home Sales.

Finally the SPX made a new high today. It took out its old high of 1119 by 1 point, making a new high at 1120. The Nasdaq also made a new high today, but the Dow was missed its high by about 30 points.

Now, like I have been saying for a while, the bulls needed to break above 1120. They didn't today. Each time the SPX approached that number, it backed off. Classic role of resistance. Also, the wave structure was looking for a new high, we got that today. But was this high the final high for P2? It might have been, but I don't think so. We didn't really sell off after making the new high. Plus, I don't expect the market to sell off during the holiday season.


So I guess then today's high was the end of Minuette wave (i) of Minute wave [iii] of Minor wave C of Intermediate wave Z of Primary Wave 2. Confusing, yes, but look at the notations to the side of the page so it makes it easier... But that's where the count stands now. I think we are due for a quick Minuette wave (ii) pullback, to perhaps 1107-1110, just to reset the indicators before we go on to make new highs yet again.

Right now, Minuette (ii) seems to be taking a form of a complex pattern. If we make a new high again tomorrow, Minuette wave 2 most likely ended at today's low.

The SPX has now also retraced 50% of this bear market.

The Nasdaq has now retraced the perfect ideal 61.8%

The US Dollar also made a new high today, but I still think it may retrace down a little before contuing its uptrend.