Market Update - 3/3/2010

The SPX continued to crawl its way higher today. At this point, it seems a bit tired. The up moves are getting shallower. The volume is getting lower as we go higher. It looks as if it is ready to fall at anytime. It's just coming down to a matter of when.

We nearly reached the 78.6% Fib. Retracement today, making our high around 1126. 78.6% is around 1128. Really, Minor Wave 2 could top really soon.

Only thing is, the move down from the highs today, doesn't look impulsive. It's hard to fit a nice 5 wave move down. We'll have to see what tomorrow brings.

If we manage to get over 1128-1130 tomorrow, it could be trouble for the bears. There is really no resistance after this until our highs at 1150.

Also, all this resistance we broke over now becomes support. We need to break below 1115, 1110 and 1100 now.

The daily candle stick once again is bearish.

Seems like a potential topping doji. We need confirmation tomorrow.

The US Dollar continued to pullback a little from it's resistance around 81.35.

We broke below the wedge, but we landed right on our horizontal support right around 80.

It may get down to the mid-79's if the SPX continues higher. If not, watch for 81.35 once again.