Market Update - 6/3/2010

Ovbiously Minuette wave [ii] is not over yet. The up move for the past few days has taken out the bearish count. We also broke the previous highs at 1103.

We have some resistance coming up at 1107 and the gap fill is at 1114. These are the key numbers to the upside going into tomorrow.

The wave structure is still choppy, so that implies we are in some sort of a correction, rather than an impulse up.

We also have a bear flag on the daily charts, the current target is around 960.

This would also make a nice 1-2-3 down.

We also have a giant head and shoulders pattern setting up on the daily chart. Now I know that this pattern has failed many times in the past, but that is because of the strength we had to the upside. If this down trend does continue, I don't see why this H&S should fail.

The target is much lower from where we are, but we still have to form the right shoulder, somewhere between 1125-1150 is the target for that.