Market Update - 6/9/2010

The waves played out just as expected today. Yesterday, I was expecting 1075 for minuette wave (ii). The reversal today could also mark the start of wave (iii).

The wave structure we have currently it setting up for a very bearish down move to come. We could be entering the heart of wave [iii]. The current count is that we are in minuette (iii) of minute [iii] of minor 3 of intermediate (1) of primary [3]. If this wave plays out the way it should, we could have a very big down move coming our way. All the bounces will be limited and hard to predict.

But on a shorter time frame, we could get a test of 1065 early tomorrow before falling. Again, we may or may not get the bounce. If this is a powerful wave 3, bounces will be very limited.

Breaking below 1050 and 1040 will be exteremely bearish. If we break 1065 or 1070, we could have a slightly different count. So watch for those pivots.

The daily charts are also set up for a big drop to come. We have broken the trendline, backtested it, and we have backed off about 15 points.

The set up is there for the bears to push it down. The daily candle stick is also a shooting star.