Thursday, August 30, 2007

Expecting a down day today

Todays pattern looks like the reverse of yesterday. ER2 today and ZN yesterday look the same right now if you compare the two charts. Downside target on ER2 is 780. FXI is waving down and NYSE A/D is neutral. Today has been another rollercoaster ride so far for me, having 3k unrealized profit disappear on the sharp reversal at 9:20am. Currently I'm up $500. YM much more bullish then ER2, which tells me the market is acting correctly. ER2 had a bigger bounce yesterday which leads me to believe this market bounce was do to short covering. ER2 shouldn't be higher then YM in terms of a 3-5 day performance. Looking for a signal around 11:30-12:30pm. We could just chop into the close though with all this Bernanke talk. ER2 is setting up for a 3 wave down pattern right now. I'll keep an eye on the Aussie dollar, JPY, FXI, and ZN to see what type of action we get into the close.


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