Thursday 9/23/10 wrap up

Lots of overlapping waves since the highs on Tuesday, looks very much like a developing triple zig-zag pattern.  It's either the first leg of a correction to the rally from late August or it will be the entirety of that correction.  More likely it's the first leg as it doesn't seem reasonable that 2 or 3 days of selling would correct a solid three weeks of rally.  Also, it's hard to imagine that this pattern is the onset of more than a correction given it's choppy and overlapping nature.

Trend/Osc sytem generated a sell at 4 AM this morning when the Dyn Osc dropped below 80.  Waited for a retrace to act on that signal and hit it fairly well with a short ES position established @ ES 1131.00 a little after 10:30 AM.  So currently holding short with a Stop & Reverse @ 1135.00.