Daily Stock Market Update – Part Three – 08/25/11 © ™

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• Short Term
• August 22, 2011 To Present
• Step 1 Up – Finished – Verified
  
• Current Action Status – Sell (buy back at lower prices)
  

I mentioned earlier that I was busy early this morning and the reason was that I had been raising my stops all morning.  I saw a multiple top forming overnight coupled with a peak late yesterday.  That made me pretty edgy and I began raising my stops.  I was stopped out near the top for a healthy profit.

The market is correcting after finishing its 3 steps up.  I will likely reestablish my position at lower prices.

The concern is that Bernanke will disappoint tomorrow and I now believe that will take place.  Jeff Saut said he believes that Bernanke will do nothing more than repeat the FED’s comments from the last meeting.  The comments were lower interest rates for the next two years.  There is another speech on Saturday that is widely anticipated regarding the EU, which could be a market mover on Monday.  I’ll write about that later.

If Bernanke disappoints Wall Street, I will be looking for a double bottom relating to the August 9th low.  A significant penetration of those lows would mean we are in an extended wave down which means 5 steps instead of 3 (2 mores steps to go).

The first chart is this week’s market action for the SP 500 futures, second chart is for today only.

08-25-11 SP500 FUTURES 5 MINUTE BARS

08-25-11 SP500 FUTURES 1 MINUTE BARS-2

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