Friday, March 18, 2011

S&P 500 ~ Pre-Market Warm-Up ~ 18 March 2011

As mentioned earlier this week my preferred target for wave X (B) is in the 1295-1305 resistance area. The ES has rallied huge overnight, so, the SPX is going to open just below 1290 which is already very near my target area:

I had a look at Intermediate waves (2) and (4) of Primary [A] again and they both lasted less than one month. The current correction is already one month old so based on that it could be that the correction is over already.

As said above though, the market is entering the huge resistance area between 1295 and 1305 so unless we get a rally above this level I clearly prefer the X wave scenario i.e. a wave Y down to 1220ish should follow later this month/early April.