We have had a 80 pt drop. We also mentioned the key turn date around Nov 10th (watch out for inversions into this date). We are oversold, but ideally we would like to see some more days of this selling continue. We believe another rally will brew from these levels (1018 - 1025?) and a secondary test of that low could be on Nov 10th.
The advance decline lines are showing a bullish higher lows setup.
If the market trades for a period of time below 1008, we will abandon the forecast above.
As of this point, we don't like the P3 elliott wave stance just yet. We think 1120 on the SPX is doable, probably even 1150. It would be very good for the bearish P3 case if this move was a slow arduous grind up into the mid 1100s by say Feb 2010, forming a sort of rounded top.
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