Futures zoomed on the Employment situation release this morning, the data was bad, but not horrific enough, evidently, to cause more panic selling. Instead we got a knee-jerk buy response and now we get to see what the market really wants to do from here.
It’s an important crossroad… we’re deeply oversold so we either move sideways within the channel and collapse or we break overhead resistance and begin forming the larger wave 4. Doc and I see the count as having finished or being close to finishing wave 5 down of 3 down of 5 down. It could be, however, that we actually only are just beginning wave 3 of 3 of 5 with that wave starting yesterday. We’ll likely know by the market action the rest of the day. If we get above the 696 – 702 area then we’re likely beginning wave 4, otherwise we’ll still be in the channel and treat it as such.
I see that the futures are already turning back down, so it should be an exciting day to play, or to smartly watch from the sidelines with an intact brokerage account! These are interesting times, that’s for certain…
By the way, what do you think happened to Dr. Sanja Gupta’s nomination for Surgeon General? Skeptical Nate is guessing tax problems… domestic help, perhaps? Maybe they actually performed a vetting process for once?
And what’s that smell coming from BAC? Is that the smell of Merrill Lynch carcass? The rot, it seems, was hanging out in the trading department. NO? REALLY? And I’ll bet all the other investment banks and hedge funds are completely different, don’t you? I’ll post that article in a minute.
Have a good day, be nimble…