Is that a wrap?

Markets made good on the promise of higher prices made by overnight futures and we had an impressive push upward from the open this morning.  This may well have been the push the market needed to complete five waves up.  Once five waves are complete, a pullback is called for, whether or not it’s the big turn down remains as the other big question.  For those new to the service, we use this evening update as a brief opportunity to recap the days activities relative to the expectations we publish each morning and set out the things we’ll be looking at and analyzing overnight to cover in our morning prep.

Tomorrow we’ll have a more detailed look at the move up from August lows to see if we can identify a completed five-wave movement.  Hopefully our wave-reinforcing technical indicators will shed some light on counting a five-wave move and if so, it will be a good opportunity to further discuss how to make use of these valuable tools.  From there, we’ll take another look at how we might play the end of five waves up, knowing that we can’t be sure whether a turn down will be just a correction or a return to the downtrend.

The Euro also ran up to the top end of a target range and we’ll look at the same questions about the Euro and the U.S. Dollar.

10 year treasury futures continue to move roughly inverse to equities.  We’ll see if we can’t dig in and find any more to say about them, especially if we notice any indication that we’re getting to a place where that inverse relationship might finally break down.

So even though prices moved roughly in-line with what we expected when the session opened, the action has left us with many good questions to look at for tomorrow morning’s update.  As intriguing as the questions will be, we hope that whatever we find will seeking answer will be even more interesting.  We’ll be sure to let you know what we find first thing tomorrow morning.