Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Intraday Flash



Note: the following analysis is formulated as an assimilation of Fibonacci, DeMark, Elliot Wave and other technical indicators. It is offered as education and not intended as advice in any way.


Today's impulsive move down is being confirmed by market internals as well as momentum. And for the INDU and the Nasdaq Composite (CCMP), the 3/24 lows have been broken, implying the next important Fibonacci support area that "could" provide an important bounce is INDU 9824 and CCMP 1822 (not advice). The SPX and the NDX have not violated their 3/24 lows but it seems entirely reasonable to expect them to soon enough.

The wave count in the very near term implies that we are currently in a wave (iii) down from the 4/27 peak which will resolve at lower prices and not before we see important non confirmations (in up/down volume, breadth, hourly and 34 minute momentum measures, and ticks) that would suggest a multi-day bounce. So any rallies that take a 3-wave, overlapped form "could" be sold for a move to the lower levels cited in the headline (again, never advice).

The next important support levels for the SPX and NDX (assuming they too break their 3/24 lows which is a high probability event) are SPX 1074 and NDX 1317. Assuming our current wave interpretation is correct (that we're in at least a wave (iii) down from the 4/27 peaks), then lower supports in the SPX 1040/50, INDU 9700, and NDX 1300/1320 area are expected to eventually be seen. There are a number of bearish interpretations currently but the dominant one is the wave (III) down scenario we have been following (see this AM's note for a chart with this interpretation).

So we'll continue to look for lower prices via this interpretation unless prices indicate otherwise. The analysis suggests the proper bias is to the downside and then wait to see what type of bounce develops to determine which bearish scenario is most probable. We are cognizant of the climactic-type action in breadth and down vs up volume and it must be respected, but the break of important Fibonacci supports suggest lower prices could be in order before a material bounce develops.

No positions in stocks mentioned.

The informatio= n on this website solely reflects the analysis of or opinion about the perf= ormance of securities and financial markets by the writers whose articles a= ppear on the site. The views expressed by the writers are not necessarily t= he views of Minyanville Media, Inc. or members of its management. Nothing c= ontained on the website is intended to constitute a recommendation or advic= e addressed to an individual investor or category of investors to purchase,= sell or hold any security, or to take any action with respect to the prosp= ective movement of the securities markets or to solicit the purchase or sal= e of any security. Any investment decisions must be made by the reader eith= er individually or in consultation with his or her investment professional.= Minyanville writers and staff may trade or hold positions in securities th= at are discussed in articles appearing on the website. Writers of articles = are required to disclose whether they have a position in any stock or fund = discussed in an article, but are not permitted to disclose the size or dire= ction of the position. Nothing on this website is intended to solicit busin= ess of any kind for a writer's business or fund. Minyanville management= and staff as well as contributing writers will not respond to emails or ot= her communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.<= /p>

Featured Videos