Market Update - 7/6/2010

In my last update on Thursday, I said that there was a good chance that wave (iii) was over and we could get to the 38.2% retracement which was around 1044. The high we made today was at 1042.

There is a very good chance that we have ended wave (iv) today. If this is the case, we should continue downwards and make one more new low. Anywhere below 1010 is a good target.

However, I think we may break 1000 and get to somewhere around 990.

We also have a clear 5 waves down from our high this morning. This could imply a new impulse for wave (v).

Perhaps a quick bounce tomorrow morning, then a nice sell off.

Key pivots are 1029 to the upside, and 1010 to the downside.