The last day of the Dow 10,000 Party

The pre-market economic news caused the Dow to open down for the first 30 minutes this morning to a new low for the week. However, it recoverd quickly for the rest of the day.

The wave count suggests that the morning lows were the completion of wave i of (iii) . The remainder of the day looks like we completed a nicely formed a-b-c correction that ended near a 45% retracement of the entire wave i. The final 10 minutes of trading saw what is perhaps the beginning of wave iii as the index sold off 38 points of it’s gain on the day to close at 10060. Obviously it is fighting hard to maintain above the 10,000 level.

However if our present wave count is correct, this could be the last day of a nearly year long celebration of the Dow 10,000 recovery from the March 2009 lows. If you are trading tomorrow you may want to kiss it good-bye and start looking for the Dow 9,000 donuts. Breakfast may come a lot earlier than most people are expecting. This wave iii  should start to pickup lots of momentum as it accelarates towards our forecast of new lows for the year.