1 Nov 2012

Todays action in the SPX could have produced a wave C or a wave 1 of 5.  So because of this confusing fact we will have to see tomorrow how it turns out.  Stochastics to note is the 60min at overbought.  Non-farm payroll numbers chances of producing good numbers is not good if we are to analyse an overbought 60min with good numbers.  Not to say its impossible but less likely.  Daily came out of overbought but if we trend down tomorrow on the 60min stoch.  The daily might just make a divergence.  If that divergence follows through then you can be sure that the 5th wave down has happened, which might produce a nice wedge.