Monday, November 29, 2010

Market Update - November 29th

The market broke the inverse H&S pattern I was speculating on last week but the drive to the low did not break 1172 so the market seems to be stuck in a trading range. This type of sideway movements usually are found in the 4th wave of Elliott Wave counts. And the fact that the market is holding up without the 28 Fib retracement from the rally from 1040, leads me to think there is further upside coming. This is looking more like a correction at this point and it also seems to be forming a broadening wedge, which is a bullish sign. So we'll see how much longer the market goes in this range, as long as 1172 holds we might get a Christmas rally after all. if it doesn't then it's time to stay short. I am currently holding my FXI from last week and ahead by a few points.

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