Don't like market's direction? Just wait a day! - what's next?!

Bears had Wednesday, bulls had Thursday, bears had today ... right? Well the markets do move in waves and we've just seen some sharp ones! Only nimble traders with margin could make money on both directions that fast! And even with that flexibility, it's not easy to be psychologically agile enough to suspend "funny-mentals" and just trade those levels, waves and trendlines -

So is the market oversold again or just a horrid monster to be sold, sold, sold? During the day I was tweeting about the idea that the market is getting ready for a wave 2 up. But checking out Tony Caldaro's update this evening at his the ELLIOTT WAVE lives on site, I see he's considering the wave structure more like calling for a smaller 4th wave up (UPDATE: added Tony's SPX hourly and daily below - thanks Tony!). Perhaps that would project to SPX 1047 or higher, then lead to wave 5 down testing to or under 1020 to complete the larger first wave down.

What about indicators? The CPCE made a huge spike, and the TRIN along with its moving averages mounted yet higher today. Obviously an oversold market can get more oversold. But traders can't assume on the other hand, that we don't get a 4th wave rally early next week. It wouldn't be uncommon to see a flat ot triangle, either of which will have traders feeling whipsawed once again. Note to Mike - thanks! what a week! If we get that 4th wave next, then I'll expect positive but choppy action retesting between 1047 to 1067, before rolling over late next week and the following - just my best guess right now.

At some point the pattern may still start looking like a head-and-shoulders pattern - will see, let's not force it. If and when it does, it may carry a h&s target to approximately that 982 level, or deeper. We'll see how it goes! Meantime, you're probably in the mood now for a VERY SCARY HALLOWE'EN - so have fun with your family and friends this weekend!