Market Update - 2/25/2010

Very volatile day today. We had some nice selling early in the morning. We kept going down until we hit our support level of 1085 on the SPx, the low was 1086. After that, the SPX chopped around in a 5 point range, before breaking out and rallying hard into the close. The recovery pretty much erased the entire down move from the morning. However, we found resistance at our pivot of 1105, making our high around 1103.

So these pivots seem to be playing a big role right now. If we can break back over 1105, things will be bullish. If we get back below our low of 1086, we may get some further selling.

I have 2 alternate counts for now. One suggests that we sell off tomorrow, and the other says we have a choppy day tomorrow, but in the end go higher.

Bearish count:

We came up pretty strong in the late afternoon today, but it can still be counted as a corrective wave.

Bullish count:

We came up in an impulse, and we could continue higher.

Regardless of what happens, it is key to watch those pivot points for now. 1105 on the upside, and todays low of 1086 on the downside.

Sorry for the short post today, I am in a rush. Check back later in the evening, I will have more charts. Thanks!