It is so good to have David Elliott’s thoughts on the markets again. David has been battling cancer and he will post when he can for now.  So below I have pasted David’s thoughts on the market right now.

Per David Elliott :

Friday saw a bounce in the US$, from a failed new low retest, that helped motivate the profit takers to lock in profits from earnings announcements for this last quarter.
(US$ 75.76 is my bounce target for Monday).
This may have ended the nine day rally off the DJ-30 support on the 50 SMA.
The 50 SMA bounce also ended the eight day Key reversal we saw on 9/24, and posted.
Currently the DJ-30 is showing a Stochastic SOAP sell set up that would confirm with a down day today, Monday.

The market trend is technically still up, and until we retest the daily 50 SMA, and break, we are still in that up trend. Any strong dips in the Indexes now would suggest a move back to the DJ-30 area of 9592.
For the SP-500 it would be the 1038 level.
I would not expect a straight drop to those levels, but a nice three wave move similar to the 9/24’s three wave move to the 50 SMA.
The QQQQ has given us a double top failure, so this week will be important as to how significant this will be in the big picture. Shorts can put stops over this past week’s highs.

Our immediate market dip targets are our MOBO BANDS, and the 20 SMA.
That dip translates for the
DJ-30 at 9775
SP-500 at 1062
QQQQ at 42.21

For the past several months many investors have had trouble trying to relate the DJ-30’s move to current economic conditions, and projected conditions.

First understand that the current DJ move back to the 10,000 level is all smoke an mirrors.
The November 2008 move to 10,000, and the current move to 10,000 does not reflect the same stocks that made our 2008 highs. DJ has conveniently removed the big three Bankrupt stocks that would drag the index down to lesser levels had they not replaced them. Note that not one Talking Head on TV has mentioned this glaring discrepancy.
The fact is the 2008 DJ stock index is well below the 10,000 level. Those on TOS can re-create the current DJ, minus the three replacements of GM, C, and AIG, to get a real current DJ number to compare to last November.
And this, “dump the losers” and ” add winners” also holds true for the SP and NASDAQ!
I suspect to get the DJ to new highs we will see the addition of GOOG and AAPL, to the DJ Index, within the next two years, in with more of dump the losers and add winners in order to claim new market highs.

Which brings up another point.
Robert Prechter will continue to miss market low projections in severe economic moves as a result of the DJ pulling the big losers from their index and replacing them with winners. He was expecting to see the markets take out our last lows of the year…. Not likely with the “smoke and mirrors” game. Using the 2008 DJ Index he could possibly be right, in my opinion, should we see fallout from the H1N1 or a second economic double dip.

ON market dips today:
Today look for AAPL to test $186.98
Today look for GOOG to test $ 538.50
Today look for AMZN to test $92.96
Today look for CSCO to test $23.47
MSFT looks like a breakout last week into the release of the new Windows.
A HD break of $26.90 should send it to test our last dip lows of $26
HOG suggests profit taking for a dip now.

For those on TOS and TCNET I expect to be on the chat rooms after the open and my doctors appointments. See you there.
In order to get into the TOS chat room you have to request access from TOS Support.

A follow up from the High School DECA championship for this current year
We again have Donovan’s High School #1 in the region, and #2 out of 20,000 High School teams. Last year’s International placement of #2 and 40% returns was
not a fluke !
Congratulation to the players and Donovan.