Tuesday, November 1, 2011

Pre Market Update

Pre Market Update

Looks like the bears are gonna continue the party. Yesterday in my haste to get an update out before trick-or-treating with the kiddies, I forgot to post the more bearish nested 1-2 i-ii option as mentioned in the chat room (4:25). I suggested a gap and go down, which obviously now apparently is the case with ES down -23+ points.

The 13 day EMA at 1237 may play a role here today since it has supported all pullbacks of the 10/4 rally since 10/7.

But I will also refer back to the chart labeled "repeat", which may serve as an overall guide. Notice in 2010, the market just slammed ride through all the MAs.

ES broke below the channel overnight.

Here is the bearish nested 1-2 i-ii option.
Watching 1237 first.

Based on the counts I have been tracking, the bullish case may have to take a backseat at the moment. 

My longer term alternate may have to come to the forefront. The chart above is the two potential paths I see for this path.
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