Market Update - 9/2/2010

Sorry for not posting over the past 2 days, I had some things come up.

Now the past few days have erased a lot of the down move we had over the month of August. The counts are now that Minute wave [i] ended at the 1039 low last week, and we are now in a corrective wave [ii]. A very sharp one. It may not seem corrective, but that is the nature of wave 2's. We need to closely track the movement over the next few days.

On the smaller time frames, I see a possible 5 wave move up from our lows on 8/31. This is probably wave (c) of [ii].

The target is set for some where around 1100, but we are approaching that level fairly quickly, considering the fact that wave iv and v still need to play out. If we blow right through 1100-1105 it could be a problem for the bears.

The overall count from our April 2010 highs still looks a little messy on the SPX. You can see the chart on my Chart of the Day feature. On the other hand, the RUT looks like a much cleaner pattern.

We have a series of 5 waves down followed by 3 up. This is a bearish pattern.