On the Elliot Wave Count. It suggest that this reaction only serves 2 possible things:
a. Minor wave c of Intermediate Wave 4 downtrend – meaning Wave 5 downtrend coming
b. Minor wave c of Intermediate Wave 1 uptrend of Bear Market Rally (b) – meaning Wave 2 and 3 will come up to around 11500-12000.
On our post last week, if you have followed my tip, you already are +5% to date from the bottom, and on the possible things above, choice A have a 25% chance to happen, Choice B is at 75% likely to happen.
DOW is now at 11550 resistance (1st resistance), and may take a pause for few days before it runs of the 11550 resistance towards the 11850 resistance in weeks time. On that case, I suggest those who want to cash out, to take that opportunity to get out of the market.
In terms of S&P, the resistance is different from DOW, but is at 1227, few double digit points from now, then eventually the stronger resistance at 1249. I have drawn below the possible trend of S&P, they are both downtrends, but might just be one of them. (BLUE AND GREEN). Same as DOW, I expect things to be lot clearer in the next days/weeks, and same with DOW, those who want to get out of market and stay cash, you can do a play-safe strategy when it hits 1249.
11850 and 1249 for S&P are just pivot resistance points, and for me, a 25% chance that it won’t pass thru that levels, due to weaknesses in economic indicators and Euro Crisis.
OTHER IMPORTANT EQUITIES:
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