Inventory forecasts from Corning Incorporated (GLW).

Summary

The stock market was essentially flat on Wednesday after Tuesday’s ugliness. Once again, there could be some concern ahead of today’s first unemployment claims and Friday’s all-important September nonfarm payrolls report. For a second day, the S&P 500, S&P 100 and S&P 400 closed right at their 10-day exponential moving average (EMA), while the Nasdaq and Nasdaq 100 bounced off their 21-day EMAs. As we mentioned, the S&P 500 completed a number of bullish reversal patterns in September. Based on the size of those formations, we could see a measured movement toward the region of 6,000 to 6,500. The initial rally from the bottom on August 5 to the top on August 30 appears to be the first wave higher. The pullback to the last low on September 6 resembles the first counter-trend move, or second wave. The possible rally from there would be the start of the third wave. If the above is true, the index could well creep up until we reach 6,000 or higher. That’s because the price action in wave three is generally very quiet as the pullbacks are small and the market does a good job of not letting in investors waiting for a bigger pullback. That would also suggest