Market Update - 10/21/10

It is hard to count 5 waves down from the top despite having a pretty nice reversal down today. But so far it looks like just another 3 waves down which means we could still have another high coming.

1190 was nearly hit today, the high was 1189.43. Yesterday I mentioned 1190 as the key upside pivot, and we seemed to have had a pretty nice rejection from there. We reversed about 18 points down from there.

So 1190 is still the key. If we can break over the 1182-1184 area tomorrow, we could get another test of 1190. A break below 1171 and 1168 could give the bears some momentum.

Watch those pivots as they will be key to the next market move. We are at a very critical point right now. A break of the downside pivots could claim a top in this market, but a break of the upper targets could send us all the way back towards the April highs.

The daily candle stick today is a long legged doji, which implies indecision.