Thursday, September 2, 2010

Waiting Patiently

All eyes are on the employment report tomorrow morning, but it may not matter too much. Wave [e] of B up still appears to have more upside potential. There's not much to do here except wait for it to end - probably early next week.

There are other valid technical interpretations of the market's action this summer. The problem is that none of them really fit with the cycles and the current breadth and sentiment indicators. The cycles are pointing down this fall, and various breadth and sentiment measures have not reached oversold levels. So, until proven otherwise we should continue to expect another move down to complete the correction.

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