Market Update - 4/12/2010

We nearly hit 1200 on the SPX today. Our high was 1199.20. However, I still feel this is not the top. We really didn't back off much, and mainly chopped around on what seemed to be sideways consolodation.

There are 2 scenarios that could play out now. Ovbiously, one bullish and one bearish. But we all know the market will go either up or down tomorrow. But we will define our trend once we break important pivots.

The first case scenario is that today was some sort of a top. This count is on the SPY/SPX

We can count 5 waves up from our triangle bottom, although they overlap, it could be some sort of diagonal pattern that could have ended today. If this plays out, we need to break 1191 and possible 1183 in the days to come.

The next case points to more upside, as we could be extending in wave (iii) of [v]. This count is on the Nasdaq.

We may get a small little pullback for wave ii, but in the end we are going higher whether we come down a little first or not. The main pivots for this count is 1200 and 1210 on the SPX. Breaking above this will mean further upside.

Again, we don't have a straight clear picture to start this week off. Internals weren't strong despite new highs. Volume has been unbelievably light for this time of year. It's amazing. So let's see what happens if these pivots get taken out. They should give us some further direction.