Wednesday, October 20, 2010

Elliott Wave Update - October 20th

I tried uploading a chart but I guess the system is down for maintenance. Basically, there is the possibility of a double top but also a possible inverse Head and Shoulders pattern. I went long after 1170 and took profit in the 1180 area and shorted at 1181. I expect a pullback tomorrow to 1173 but I might not cover if the market goes below that level. The next level of support would be around 1167 which would create a right shoulder of an inverse H$S if it holds. If the market bounces off these support levels, we'll probably see 1200 by December 1st and if not then I expect the market to Fib correct to the 1095-1130 area with the 50/200 day average providing strong support (currently at 1121). I should also add that the golden cross on the S&P is imminent so odds are we're in the beginning of a bull run if the 50/200 hold.

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