1/20/20099:34 PM Pacific

If you are watching the futures overnight I don’t think we will break 818/823 to the upside in order to complete wave 4 of the move down from c (866).

Looking at the cash markets there is a major Fibonacci confluence just below for both the NASDAQ100 (1120) and the S&P500 (780). This level could present a turning point if this is a 5-3-5 wave down. For the NASDAQ100 this is the .618 retracement level, a common retracement level for corrective patterns to extend from. .810 on the S&P is less common but, a valid turning point to extend from nonetheless. In any case a bounce at this level is very probable and very telling if it doesn’t stick. If we cannot hold at these levels, the bias will shift to taking out the low and this being the 5th wave down in the larger thesis. In this scenario, the projections are quite horrific. I will cover these in the next report.

1/20/20099:34 PM Pacific

1/20/20099:34 PM Pacific

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