Monday, December 6, 2010

Market Update - December 6th - Double Top ?

I am still waiting for a retracement to test the rising trendline currently at 1201 (goes up a few points everyday), I see 5 waves completed so the only upside left would an extended 5th wave. There seems to be a lot of resistance at the 1227 in the cash market and it might well put in a double top for this leg at this level. However, it might be just buying sometime to do yet another trust to pull in buyers. I favor a pullback this week so we'll see. I am hedged in my positions and will use the the correction to the rising trendline to go long on margin. I was reading today that Goldman Sachs is forecasting 1450 for 2011 and that is one company I pay attention to. They forecasted 1275 for 2010 and I think might just be on the money by Dec 31st.

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