In these type of markets, professional traders and emotional traders battle themselves and produce huge selloffs or net buying, at this moment in time, Employment was below forecast, and panic sellers are pushing the red button.
I don't know how deep and where will we head next if we fall below 1292. But I am still hoping, that this intraday low at 1285 on SPX is just a "BEAR TRAP",and need to close the end of the day as close to 1292. To stay sideways to bullish.
Today is an important day for Global Traders, Billions of Dollars in TUG-OF-WAR, who will win.
I am hoping for Bulls to win... Hoping the Positive Divergence on MACD and RSI for DOW and S&P to confirm that this could just be a bear trap.. Crossing my fingers..
Saturday 6-2-2012 update: SPX was not able to hold above 1292 closing :( Instead, a huge gap down to 1278... We give early next week a chance to get above 1292, to say its still a false breakdown and didnt break the Elliot Wave rules. Else, this would spark easy 100-200 more declines in the market. Positive Divergence formed on Daily RSI MACD for SPX,DOW and Nasdaq, WTIC also hit 83.00, an important uptrend support. Elliot Wave suggests also that 5 waves down has been completed, and short term rally is due. Short term rally should get above 1292, and not just hit 1292 as a resistance to stay uptrend. Goodluck
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