Respite

Looks like it is time for a retracement. As always, we never know exactly how far up it will go until it nears completion. Target range - 1090 to 1150 in the S&P500.

Running into resistance.

The drop last week was so scary that someone had to make up a story about a goofball broker hitting the b instead of the m when placing an order. That's ridiculous. And now the SEC can't find the cause for the 1000 point Industrials market action. That was just some very jittery feelings about Sovereign Defaults coinciding with people fatiguing from exuberance.

In Elliott wave speak, we have an increasing possibility of a 3rd wave or C wave down. The price movement can be similar or stronger than 2008, depending on the form it takes. The first leg down nearly hit my 1050 target in the S&P (1065 ish) and occurred much faster than I thought.

Here are some resistance levels to keep an eye on... AXP 45, Vix 23-24 (support), AAPL 265, CAT 69-70, DD 40, SPX 1180, Dow Indu 11000. These stocks and indices are almost certain to have a sharp downturn at these levels. If the downturn is blunted or they cruise up through these levels, then the bear will probably have to wait. If the turn is sharp and consistently downward over hours, do not be surprised to see a short term (days to a week or two) drop of 20-25%. There is the potential for a "crash".