Market Update - 8/26/2010

I think wave iv of (iii) may have come to an end at today's high, and the down move is the start of wave v. Wave v should at least break 1040, and perhaps even get down to the 1020 area or lower. Once more waves within wave v start to form, a target will be more clear.

Regardless of what wave v does, wave (iii) as a whole will most likely be pretty short. This means that wave (iv) won't have too much to retrace.

Key pivots for tomorrow is 1039 to the downside and 1061 to the upside.

The hourly charts on the SPX also look pretty bearish. There is a nice downward sloping price channel.

The MACD is also about to cross down, and the RSI is below 50. But there is a good chance that both of these diverge at the next minor low.