Wednesday, 6 June 2012

Pre-Market Brief

Good morning. Futures are holding onto pretty strong gains of around sp+10. So, the sp' is set to open around 1295 which is at the top end of my target zone for this minute'4 of 5.

The 'count' for wave'1 remains incomplete. We are still due one final fifth wave lower, but this is now looking very unlikely. I am not sure what to make of this, I suppose it could merely be a 'bonus bounce' for those bears brave enough to short in the opening hour.


Sp'60min



Sp, daily, bearish outlook, count'2


*If we have now floored (black count), the upside target (blue count) is probably at least 1340/50, possibly 1370/80.


Summary

From a cycle perspective we are going to open up very high, its certainly not a great place to still hold onto - or take new, long positions. Those bears who were shorting into the close will be somewhat aghast to see this mornings pre-market!

Those looking for one final wave lower will need to see today close red, that's feasible of course, but that sure won't be easy to achieve. There is no econ-data due today, only the Fed Beige book at 2pm.

*Remember, we have the weekly jobs data..and then the Bernanke speaking tomorrow at 10am. There is still potential for one last wash out.

Good wishes...on this 68'th anniversersary of D-Day.

More across the day.