Market Update - 10/19/10

Today was certainly one of the most bearish days we have had in a while. I don't want to jump the gun and call a top, but we do have a possible impulse wave from the top. 5 down followed by 3 up followed by what looks like an extending wave iii. However, for the bullish side of things this can be counted as an a-b-c.

The price action tomorrow could determine which path this market may take. For the bearish count to hold, 1170-1173 must hold. A break over 1177 will eliminate the bearish counts.

On the downside, it would be nice to see a break of 1155-1157.

Yesterday I had said that 1175 and 1166 were the key downside pivots. We did break them both and closed right on 1166.

If we continue to break down, 1155 is the next key pivot area.

The USD was up about 1.77% today, I might have been right about the bottom on that. Check out the charts of the day for my charts on the USD and more. I will update those in the next few minutes.