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Tuesday, September 8, 2009

Elliott Wave Update ~ 8 September

My eyes are on the qqqq's like I said this weekend. The qqqq's were lowish volume again.

Overall the indexes are all forming a very nice head and shoulders pattern has setup on just about everything with a right shoulder forming. Total volume picked up a bit today as expected but advancing volume was much lower than on Thursday/Friday.

Today looked like a small consolidation for the bulls and tomorrow may be the day they attempt to assault the breakdown resistance gap at 1030 or so. So far the whole thing looks a bit of a dead cat bounce up from the recent 991 low.

DOW up .59% SPX up .88% and NASDAQ up .94%. A small bit of a fractured market continuing from Friday. A little push on this sector one day and then a push on another sector the next day. So far, it is not wave [iii] price behavior if you ask me! If this is some kind of Minute wave [iii] of C up then the advancing and total volume needs to pick up pronto or else it will get hammered back under major support.

The SPX sports a 2.5 point gap up and it only advanced .88% overall yet held the full gap! This is the MM's working the tape to its fullest.

I am still going with 1039 as the P2 high and this is just a deep correction back up. The market will have to prove itself come tomorrow/Thursday that P2 is not yet over.
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