S&P 500 ~ Pre-Market Warm-Up 13 August 2010

I think you've already read it everywhere that a Hindenburg Omen was triggered yesterday. We need another one within the next 35 days to get a confirmed Hindenburg Omen. Once we get it, a stock market crash within the next four months is very likely.

For more information click here: http://en.wikipedia.org/wiki/Hindenburg_omen


So, what's the stock market gonna do on Friday 13th?

I mentioned yesterday that I wasn't sure whether wave (i) had already ended or not. As I'm writing this the ES is down again (1075) after being up 1 % earlier. If the SPX opens below 1080 I think wave (i) is still underway. The targets for wave (i) are 1070 and then the 1055-1060 area. Below that? 1040 and then flash crash alert on Friday 13th... : ))

Thus, unless the ES rallies now we should see 1070 and possibly 1060ish today. If the rally occurs though and 1087 and then 1094 gets breached wave (ii) is likely underway with a target between 1103-1110.

Edit 9.30 am: There's a big inverse H&S in the ES. If the neckline around 1089 breaks we may go up to 1105ish.