Thursday, June 10, 2010
ChartsEdge Pattern Recognition and beta bp comments on stock market 6/10; plus my remarks on euro and stocks
Well the SPX made it to 1075 as I'd hoped yesterday (see my tweets from Tuesday), then sold off. But the original ChartsEdge forecasts for this week had indicated a high for today, Thursday - and with the Tuesday low testing the 1042 area, I've got a pet theory we might see Friday strong too, whether or not Friday is higher than today. Tuesday was also "turnaround Tuesday" before opex week, with yesterday being "Weird Wollie Wednesday". Whatever else all that means, remember that max pain starts being a factor for targeting where prices land a week from tomorrow.
So the next round of questions us around whether today or tomorrow is a sell, or do we look for higher prices next week? I'm skeptical of higher next week; and we know SPX 1090 is a major hurdle. One possibility for bulls is that we complete a first wave up this week and pull back in a wave two next week. For bears, that we're in some fourth wave now with a fifth wave down next week. Don't hold me to absolute Elliott Wave accuracy, it's just the idea that next week may not have strength. There are risks that both the euro, and the stock market, will need lower levels before the next big move up. For example, the euro is showing signs of life from its test of the $XEU 121 area, as we'd expected and described. Now we'll just have to see if it can build on that test and the positive divergence it had been showing.... Or will the euro fail to stage a bullish reversal above 121/122 and roll down toward the 112 mark. However long it takes to work out the answer, that's the big question for the euro now (hand in hand with the stock markets).
And today, thanks again to Mike Korell who shares his ChartsEdge views by the links below, from his webpage at http://www.chartsedge.com/wp/