Market Update - 8/16/2010

Just to let you all know, I will be gone for the next week or so. I will not be posting for the rest of this week, and perhaps a little into next week. Check back some time next Tuesday/Wednesday. I should be back by then. Also, tomorrow it will be 1 year for this blog... and I want to thank all of you who visit here frequently. It has been a pleasure doing this. Let's hope for another good year! :)

Last Friday, with the down move late in the day, I had expected that perhaps wave v of (i) was underway. Looks like the gap down this morning may have completed that wave v.

As long as 1069 holds within the next few days, wave (i) has ended and we are in a wave (ii) bounce. Expect a back test of 1100 perhaps.

The key pivots for tomorrow are 1069 and 1082. If 1082 gets taken out, there is a good chance that this is wave (ii). If 1069 is broken, wave (i) may have one more bottom coming. But I think this is most likely a wave (ii).

By the time I get back, we could be completed with wave (ii) and at the beginning stages of wave (iii) of [i]. So watch for any test of the upper 1090's to lower 1100 and then possibly a quick reversal.

See you next week!