Thursday, November 18, 2010

Market Update November 18th

The market retraced to the 1190+ area as I was hoping and I ended up selling my longs from 1187 and going short at 1194. However, today's impulsive wave needs to be reversed hard tomorrow or else it will mean there is still another wave left to the 1205 area. So I will be setting up my stops at break even at the 38% retrace. The market is no longer in a 5 wave count so it now opens up to other possibilities, what they are is anyone's guess but I will be watching the level (currently at 1202) and see how the market deals with it. The market is in a downtrend so it usually bounces off from this trendline but if it manages consecutive closes above it then the short term trend will change to positive. Until then, I am assuming a bearish trend and trading along with it.

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