ChartsEdge (US equities) pattern map for 10/7

ChartsEdge Pattern Recognition for Oct07Posted: October 7th, 2009 Author: Mike Korell Filed under: One-Day Market Map Comments to ChartsEdge »

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Thanks once again, Mike and ChartsEdge!

Folks - sorry for the delay in getting this posted, just some technical difficulties this morning. Today we'll see if equities can make more progress upward in order to preserve some of the more near-term bullish wave counts. Given the look of this ChartsEdge map, we cannot be so confident. But a key level to watch for support is SPX 1041 (above that, about 1047 (1046/1048). If below that, then 1037, 1032/1033, then really wanting to see support at 1028 if it gets that far - will see.

Natural gas futures have done great, along with company stocks in that sector, while UNG has lagged somewhat but maybe will catch up if it can get momentum above that very important $12.00 threshold. We already know the dollar's weak again along with gold hitting new highs - I'm personally keen to see whether 1192 might prove out and would prefer to see more strength in gold or else I'll get concerned about this being just that old "B" wave idea expressing as an expanded flat. But not to worry about that unless and until the dollar gets a floor.

And the yen staying above 111.49 is key to its continuing toward higher levels, which may be surprising to some but not to those either seeing my Fibonacci or seeing the wave count ideas I've put forward as well as Tony Caldaro's for the yen. As for the euro, best thinking there is that it should reverse not too far away along with a reversal in the dollar. Even if those turn out to be nothing more than corrective reversals ... again - will see!

I hear coal's doing well, not something I personally follow really but some readers may want to check it out. For that matter, we'll have to see if oil is deciding it wants to try for the $80's after all, although it seems much more likely it needs more correcting before being ready for its next major move up.

As always - careful out there, and happy market navigating!