Sunday, August 7, 2011

Futures down quite a bit at the open. ES was down some 30 points and currently trading down 22 points as of this writing.

It appears the 1150 head and shoulders target is something the market may be gunning for. Let's see what happens overnight.

Bullish Option

The very bullish option calling for a wave 3 of 3 up once this correction is complete.

Channel watch.

The 200 week SMA at 1157 may be the key here. The market has nearly touched this level. Let's keep watch here. Should it hold, it may support the bullish option above.

Corrective count options

One calls the top in and the other implies one more push higher.

Should the top be in, this would be the bear count.

Should the bear count be playing out now, this would be my longer term view.
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