Monday 5/10/10 wrap up

Stopped out of Friday's short ES at open last night, loss of -15.25 points.  Could have been a lot worse but for the stop loss the position was carrying.  The Buy line barely ticked above the Sell line at the close today, we will need some selling tomorrow or we will move into Buy mode. 

Did a quick short trade this morning based on the 5 minute V Stoch, it also was a loser but minor (1 point).
Even though we may move into Buy mode on the Buy/Sell line a short day trade might be something to consider early tomorrow, it looks like today's action was mostly a 4th wave with a 5th wave into the close, so if that's correct then a move down is in order.  A lot will depend on what things look like when we get there.

After some study I'm fairly certain that the move down from 4/26 into last Thursdays lows was 5 waves.  This would indicate that the current rally is a correction and the primary trend is down.  Whether this is the famous P3 or something else remains to be seen.  I did a post on the longer term possibilities on HOB last week which discusses those possibilities http://hotoptionbabe.com/2010/05/06/some-long-term-possibilities/