12 Oct 2012

Still looking for lower prices that might end its current run by monday.  The best wave count that fits both SPX and DOW is that this is an ABC due to the DOW making a new high late last week.  There are a few who called the SPX a failed move for a 5th but even that is covered by 3 wave pattern all the way up.  Therefore we will still be looking for our indicators for clues.

Conclusion:
Our Daily indicators for the SPX and DOW both show "Oversold" (It can stay oversold for a while so the next clue is on the 60min indicator.  Our 60min stoch. has also diverged and when it comes out of its oversold range short positions should be covered and watch to make sure the daily does follow up and crosses for an uptrend.  A small position can be placed for the upside but any turn around by the 60min stoch. down should be sold.