Wave chart at 11:05

Here is the e-mini wave chart as of 11:05 am. The Treasury announced its latest financial rescue plan at 11:00 am. The initial market response sent the e-minis up exactly to the resistance level mentioned in the last post although this frankly surprised me. The market came off immediately and five minutes later a huge volume of sales sent it below 850. I covered at 847.50 because a market like this is hard to read.

Resistance now is at 853 (lower purple dotted line). We have already had two 9 point rallies today and I like to use that as a measuring stick for subsequent rallies. I see temporary support at 840 and a rally from there will probably peter out at 848-50.