Trick Or Treat?

With this morning's follow through in the futures, it is quite possible that the S&P may have put in a bottom. 1443.90 should be exceeded handily in the cash market. If for some reason it isn't exceeded, then I would be on the lookout for a strong reversal.

There is still a chance that the market gets to 1450+ and reverses, but after yesterday's action I think it has much lower odds. Yesterday's action left a three-wave decline in the morning during the European close when I usually take a break. It's a good thing I wasn't trading it. I made a few bad calls on Twitter only to have them go wrong almost immediately. Another reason not to make any big moves on Monday mornings as the market digests everyone's "weekend reading."

Since I do my wave counts in my head and only rarely on charts, I want to pass along this scenario by Andrea Calissano. It's a very interesting wave count and merits attention.

While nearly "everyone" is calling the bottom yesterday, maybe the market still has a few tricks up its sleeve. Halloween is close by. Trick or Treat?