ChartsEdge Pattern Recognition intraday map for 2/10

Here's today's map from Mike Korell's ChartsEdge. I've added some comments of my own a bit later, underneath the map chart, to discuss the swing view of equities. Meantime, thanks again Mike! for this Pattern Recognition map today, at http://www.chartsedge.com/wp/

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Pattern Recognition

Posted: February 10th, 2010 | Author: Mike Korell |

Filed under:One-Day Market Map | No Comments »

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Thanks again Mike! Folks - the idea of dropping rather than rising seems unlikely for another day, despite Mike's recent statement about his TCI most recent signal at ~1100 having been a high rather than an impending low. I'll take Mike's interpretation he gave, which is to expect sideways (range) movement before the next trend move down.

The time and price movement indicated for today kinda makes the Objective Elliott Wave idea that's Tony Caldaro's primary count of a small wave 2 up, look a little less likely. But it remains very possible. Especially under SPX 1082-1087 range. So far the rise was a Fibonacci 34 points to 1079 in the SPX cash index. Above that, it can still persist, theoretically up to 1100-1104, but would become less likely. The cycles guys all seem to be warning of lower levels into late February or early March. So even if the OEW count is forced to change (maybe as a larger wave ii or b, correcting the whole drop from 1150-1144, although that idea has some structural problems too), any alternate count should allow for another significant and maybe sharp drop (as Terry Laundry puts it in his T Theory update this morning; follow the links at his site in the sites list at right).

So KI$$ swing traders shouldn't feel that they're missing any opportunities with these market gyrations. Some of the gyrations appear to be caused by European countries helping Greece with their bond situation. Also by the US dollar almost tagging the 80.80 symmetry target. But between "almost" not being the same as "meeting" (and don't forget the yen, which has been quietly consolidating and threatens to run above $XJY 111.49 again), plus the technicals, sentiment and cycles, the situation does not look ripe yet for serious swing buying. So keep that KI$$ cash cold for another two or three weeks.

So we'll keep the close eye on equities indices and currencies, and also on whether TLT / US Treasury 10-year notes and bonds are starting to roll over into that wave 3 down we've described in several posts here recently. If so, it should happen quickly enough and might become our current "best trade" since wave 3 movements are normally the best. Early speculative stops at the highs of the past few days, and confirmation for standard swing trades hopefully coming in the next day or so.

All in all - careful out there as always, and happy market navigating!