Jan 10 2011 update

My feeling is that the SP-500 has not topped yet.  I believe this quick 16 point Zig-Zag move down to 1262 the past two days off the 1278 high is a minute degree wave (4).   It also alternates with the wave (2) flat at 1173 in late November.    Ideally the wave (4) correction should meet a minimum 23% retrace of wave (3) or 24 points.   Thus, I have alternate count that shows a potential double ZZ with one more test of the 1257 pivot tomorrow.  However, the 1257 pivot has held as support on three separate tests already and based on the strength of the Nasdaq and Russel-2000 today, minute (4) should be over and wave (5) is underway with today being the wave ii-(5) low of 1262.18.  Wave iii-(5) should target 1284/1288 and  I have the final wave (5) target of 1289 to 1291 that could come quickly in the next two days or drag into OPEX week.  I believe it will likely drag on into OPEX and frustrate traders who want to get short.

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