Tuesday, September 14, 2010

Elliott Wave Update - September 14th

Here is the updated chart with today's price action. Going with the assumption the top was 1127. To confirm this count, we would have to gap down tomorrow and break the wedge and the 200 MA in the process, which is around 1116.

Other signs that we are at a top are:

- Long Legged Doji: This pattern is a significant reversal pattern at tops and we got one today. A sell off tomorrow confirms reversal.

- Low put/call on SDS options which points to a significant move (SDS is 200% an S&P short)

- Investor's sentiment is the most bullish since the April top. Click here to see the numbers from AAII

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