Sep01.pdf

Trading plan for September 1, 2010

ES finished August at the low end of the monthly range. Despite predictions that August would be positive for the markets, all three major indexes had their worst performance for August since 2001

There is a positive seasonal bias for this week, but so far the ES has not completed its first sub-wave of the declining wave 3, based on our Elliot wave count. Investors are reluctant to make a commitment on the buying side amid concern the economic recovery will fail. Tuesday’s FOMC minutes added to that uncertainty.

ES still holds above the major key line 1037. But every bounce from the key line gets weaker and weaker. We may see ES continue consolidating for one more day. But we should expect a breakdown through 1037 soon. It is not certain, but it is likely.

Date Added: 2010-08-31 19:49:58
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