S&P Futures: Daily Wrap Up for November 3, 2010

From Monday's post, the wave structure called for a new recovery high. The combination of several somewhat positive economic reports, the election results and the FED's QEII announcement provided comfort for traders to push the market higher.

Bottom Line: Price made a new recovery high and has filled the gap (green resistance line) but market indicators and internals continue to lag. Conditions are ripe for the reversal that I have been calling for. However, I would be remiss if I didn't mention that the drop dead limit to maintain this wave count is the April high of 121650. So essentially, it's do or die for the Bears.

Here's the Market's position as of the close:

Momentum Indicators: OB on Weekly and Daily. 60 min chart is bullish but not in OB territory.


Pattern: final wave.v of wave.c of wave.2. W.2 may have completed with the new recovery high.
Time: No change from previous comment.

Trade Strategy: Looking to establish a bearish position as 60 min momentum indicator reaches OB, then makes a bearish reversal.
Best of Trading