Sector Investing

[ReturntoSender]

Amateur Weekend Stock Market Analysis (9/17/11)

http://www.amateur-investor.net/Weekend_Market_Analysis_Sep_17_11.htm

Since the low made on August 8th at 1102 there have been a series of sharp moves in both directions over a short period of time which has led to a very choppy pattern as the market has been whipsawed all over the place.



Meanwhile one potential pattern to watch for is another Head and Shoulders Top pattern like we saw earlier in the Summer although this one is of shorter duration. If this pattern is going to pan out the S&P 500 would reverse back to the downside early next week.



Finally for those that follow wave analysis we have seen a series of overlapping waves since the early August low of 1102 which is usually associated with a corrective pattern. Keep in mind from mid July through early August the S&P 500 fell 254 points (nearly 20%) over a short period of time. Thus the move from 1356 to 1102 could either be Wave 1 of a larger 5 Wave pattern or "A" of a larger ABC affair in which the 1st Wave or "A" truncated at 1102. Meanwhile the move from the 1102 low is either a simple "abc" Zig Zag or a more complex "WXY" affair for Wave 2 of 5 or "B". In either case the target for Wave 2 or "B" could be around 1250 which is along the 200 Day EMA (green line).