Wednesday, January 13, 2010

Did P3 start?

We did not stray to far from the 62% level, SPY peaked out above the 78% retrace before sliding back slightly. Wave 1 was a leading diagonal down with wave 2 having a deep retrace. The target for wave 3 is the 111.75 area or lower. For this to happen SPY must collapse tomorrow, in fact a gap down and further selloff would be do it.
VIX is still playing outside the wedge, but within the BB. The next 1-2 days should send it back into the wedge and above.
Just looking at the BPSPX its interesting that while the market was up, it was down. A bit of a negative divergence.

In conclusion, I am looking at a sub 112 target in the next few days. That is unless we open tomorrow above high of today.
blog comments powered by Disqus