Tuesday, January 11, 2011

Triple Top?

I eliminated the possible 5 waves up from the chart because of W4>W1 rule violation and in turn the pattern is starting to look like a triple top. The technicals are in place for a reversal and the MACD has turned negative. However, until the market closes below the 1269 level, we could see a rally that could bust resistance and the earnings season is usually a good excuse for the market to rally. In order to confirm a reversal, the ideal would be a W3 that would break 1269 convincingly. I think we'll get an answer by the next few sessions.

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