Tuesday, November 16, 2010

Market Update November 16th



Prices did trend down as expected and it reached the Descending Triangle Pattern target of 1183 from last week and some more. I went long at 1187 expecting a bounce that never materialized. However, I think we'll see a W4 bounce or another wave that will test the descending line from the DT to relieve the oversold condition and then continue downward. If the EW count is correct, this wave would bottom around 1155-1165. However, lower prices are very possible as long as the market does not go back to the trending level I watch which is at 1209 right now.

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