Market Update - 3/29/2010

More sideways action in a narrow range again today. The SPX was trapped in a 4 point range all day. Volume was also very light. We still seem to be in a wave 4.

I was expecting the Nasdaq to come down a little bit more to complete its wave (iv). It did not, so it could be possible that it has already ended.

The alternate count on that chart is that we still come down to make the wave (iv) low and continue higher afterwards.

I have a similar count on the SPY.

If this count plays out, we should continue higher tomorrow.

It is still hard to count a bearish wave pattern off of our highs last week. Until we get more selling pressure, the trend is up.

If we break below 1160, we could go lower. Breaking above 1180 will produce another up move.

The US Dollar continued to pullback today. Crude and Gold were up and the VIX was down.