Market Update - 6/28/2010

I apologize for not posting in a few days, I have been really busy.

Last week, we left on the possibility that we were starting Minor wave 3, a new and more powerful down move than what we have been seeing. I think today was perfect proof for that. We have a nice looking impulse starting to form from our highs. A lot of signs point to this being Minor wave 3. We have broken the very important pivots for 1044 and 1040. This area, as we know, has been very strong support. We broke it today. Internals were also 60:1 at the close, and hit 155:1 intra-day. We are setting records here.

The primary count suggests that waves we are in subminuette wave i of minuette (iii) currently. We could get a quick bounce back towards 1050 for wave ii before we crash in wave iii. But remember, this is a wave 3 to the DOWNSIDE. Don't be fooled by any upside corrections, they could be very small - if they occur.

Breaking below today's lows will be bearish. We could get to 1029 easily. Key pivot to the upside is 1050.

Speaking of 1029, this is our next major pivot.

1029 was our low in early November of 2009. If we do in fact break below this, we could get to the lower 1000's easily.