S&P Futures: Market Wrap for October 13, 2010

I continue to watch the USD Index in anticipation for a turn that will undermine the current rally in equities and commodities. So far the index has held above the low established on 10/11/2010 but  most recently the Index can't seem to put together any sustainable follow through.

Today's ES_F move forces some minor labeling changes of the 60-minute chart. Nothing changes the outlook. I am anticipating a small move down, followed by one more push to new highs based upon today's trade. Here's the market's position as of the close:

Momentum: Remains OB on weekly and daily time frames. No turn down. 60 minute TF has turned down supporting a decline.

Pattern: final wave.v of wave.c of wave.2

Time: No change from previous comment, "The weekly chart level, H-H time relationships indicate that momentum highs range between 6-8 weeks +/- 1 week. That indicates that the top of wave 2 should occur at the end of this week. In addition, L-H time relationships of 4-5 weeks indicate that a significant top should occur at the end of this week +/- 1week"

Trade Strategy: Remain flat but looking to establish a bearish position as momentum indicators and price confirm a top is in place.


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