Market Update - 6/22/2010

1095 was the lower end of my range for wave [b] that I talked about yesterday. The SPX closed right on it.

According to the current primary count, wave [b] of 2 should be over. This means tomorrow we start a wave [c], which should take us higher over the next few days and perhaps even break 1131.

Wave [b] retraced almost exactly 38.2% and within wave [b], wave c = wave a. This is a perfect textbook wave [b]. Which means tomorrow we should be starting a new uptrend.

In order for this count to be valid I think that 1090 should hold. 1090 is a very key pivot.

As I have marked on this daily chart, 1090 marks our gap up on 6/15. Closing this gap will be bearish.

Any further down move with strong internals could imply wave 2 is over and we have begun wave 3.