Market Update - 3/4/2010

Most of today was spent bouncing between 2 pivot points. We tried to sell off early in the morning, but found support around 1115, making our low at 1116. On the upside, we stalled around 1123. Close to the 1125 level.

For the past few weeks, we have had low volume. And for the past few days, the market really hasn't moved. But like I had said earlier, the up moves are getting shallower. The market looks tired up here.

The wave structure on the smaller time frame at this point seems unclear. We'll have to wait for the market to make a move to clear up the shorter term structure.

On the longer time frame, it seems as if the SPX wants to give one last final touch to the line coming down from the highs in October of 2007. Everytime we have hit this line, it seems to have created a down move much larger than the previous.

Currently, this is somewhere around 1132. We'll have to see what happens if we get that high. My guess is, if we do... it will be intra-day for a short period of time, then we reverse down hard.

On the overall wave structure, this Minor wave 2 seems to be topping out.

I think it's just come down to a matter of time now. Technically, it is ready to fall at anytime.

But until we get some direction in the markets, it's still key to watch the pivots. Keep an eye on 1115 and 1107 on the downside, and 1125 and 1132 to the upside.