| Index | Strat | Risk | Target |
| DJIA | Long | 7791 | 9860 |
| NASDAQ | Flat | ||
| S&P500 | Long | 826 | 1080 |
To review: “The decline from the October 2007 high is in 5 waves, therefore a multi-month countertrend 3 wave advance is underway. Fibonacci resistance does not begin until 8736.” Wave B within an A-B-C corrective advance from 6470 is complete at 7792. The Dow should rocket higher in wave C in the next few weeks. One possible target is 9864 (100% extension).
The Dow has started to trade lower after failing at 852 the 61.8% Fibo extension of the 9,795-6,470 decline. Given current momentum we could see a retrace back to 8,125 which has served as support in October and December of 2008.
The S&P count is the same as the Dow count. A B wave is complete at 827. A target is 1086 (100% extension) and the index should remain above 827.
The S&P 500 traded back below 900 and is threatening to break from the current upward trend. The break below the psychological support level leaves the door open for a retrace back to 850.
The Nasdaq is in the same position as the other US indexes although the short term pattern is not clear. A deeper corrective rally is likely; perhaps to the 50% at 1902 or the 61.8% at 2094.
The Nasdaq broke below support at 1,700 leaves open a retrace back to 1,600-the April 20th low, where we could see staunch support. There we may see the current uptrend resume with another re-test of 1,785.
