Market Update - 6/1/2010

The sell off at the end paints a very bearish picture going into tomorrow. The move down was pretty swift, some sort of wave 3 perhaps.

The primary count is that wave [ii] could have already ended, and that gap at 1114 may not be filled for a long time.

If this is the case, tomorrow should be pretty bearish right off the open. The only reason this count could be wrong is because the waves from the high @ 1103 don't look very impulsive. We will have our answer tomorrow.

Even the daily charts look like they are starting to roll over again a little bit.

If we break that trendline, which is around 1066 for tomorrow, we could have a move down to at least our lows around 1040.