Market Monitor Update, Thursday, 04/09/2009 03:37:06 PM EDT
by Keene H. Little
HAVING TROUBLE PRINTING?
The very short-term pattern for the rally off the mid-day low today would look best with one more push higher to complete the 5th of the 5th wave for the move up from Tuesday (upside tardet near 857 is still a good one). It continues to look like a good setup for a pullback on Monday (QCharts is still showing tomorrow, April 10th as a trading day so the pullback "tomorrow" is actually on Monday). A good Fib target for the pullback is in the 835-840 zone and then it should continue higher again.
SPX 30-min chart:
With a completed leg up from Tuesday it would take a drop below gap fill near 825 before I started thinking bearishly about this market. There are plenty of warnings for the bulls, some of which I'll get into in the Thursday newsletter (which will be out tomorrow as part of the weekend wrap), but price rules and price says stay long for now (but be ready for a pullback if you're a short-term trader).