Wednesday, January 12, 2011

Target for January almost reached today

The market busted resistance levels as I speculated yesterday and the rally continues. This obviously eliminates the possibility of a Triple Top and the rally today can be considered part of a W5 assuming all the bouncing off the levels I was posting were corrective waves. Now the question is if what we saw today is only part of the W1 within this W5 or the W5 itself. I posted the target for 1290 for the month of January earlier this month and we came very close today and I am assuming we will see this level tomorrow or Friday if the count I posted is right.

I am still holding that short position but I am also holding my longs from early December. And until I see the primary level broken and closed under, I will continue to assume higher prices. It's worth noting that I've been posting this rising trend since early December and the market has not closed one under it. It has tested a few times but has yet to have a truly bearish day which is in itself amazing given how long the market has been rallying. And now that everything looks bullish, there is no better time than a sell off to start. Level to watch is 1272.

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