Wednesday, April 27, 2011

Break Out

The market is definitely breaking out of the triangle at this point and it seems to me like we're in for a bullish year regardless of oil, possible recession or whatever as this is a rally being fueled by the Feds. I was expecting a pullback today but almost every pullback recently has been around 5 points so it's tough shorting this wave. I am still holding my shorts as I think we will correct to the TA eventually but it is going up fast so this correction better come soon. Everything is bullish now I am just waiting for the correction to get back in long.

As far as the wave count, the entire wave from 1294 could be considered a W1 of a larger degree and it is running out of waves at this point if we were use basic EW counting guidelines. The next resistance is 1261 so let's see if it makes it there. It seems like the 1370 target I had posted on the 1st of the month is within range.

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