S&P Futures: Trade Plan For 11/17/2010

My bias remains to the downside. Looking at the wave structure as of Tuesdays close, I believe that we are working w.(iv) with a target of 1188. Also note that the .236  retracement (1181.75) is also an acceptable termination point for forth waves. One should note that I am unclear as to whether w.iii circle has completed. Given this I am not willing to place any short trades as the retracement levels would be significantly different depending on where w. iii circle had ended. Interestedly, the ON session traded within a tick of the .236 and has completed w.b at agreement 1175. As of this post, price has traded above w.(b) of w.b indicating that the decline from 1181 is now confirmed as a corrective structure and that the move will be fully retraced. The min. target for EF_057 is 1182.5- 1183.25.

Conclusion: Wave structure confirms the expectation for a rally but we are not certain as to whether the end of the move will be 1182.5- 1183.25 or if the market will push higher to 1188 for ES1_057.

Plan accordingly.

Best of Trading