Thursday, May 27, 2010

Intraday Update 27 May 2010

The SPX/ES is above 1090 but we haven't seen some sort of short covering rally yet.

If the resistance at ES 1094 is breached we should rally higher to 1108 where (a) equals (c). There is also the 50 % retracement of the move from 1175 to 1037.

A decline below 1080 would be quite bearish and wave [iii] would very likely be underway if we dropped below 1055.