Wednesday, May 25, 2011

TA to be tested?

The selling that occurred after hours failed to show in the cash index. The market bounced off support and rallied from then on. I think we are going to see the TA (currently at 1329) tested again on this counter rally. If the bulls are able to make the market close above the TA then there will be a chance to turn things around. But as of now, the trend is bearish and any rally should be considered a counter rally until proven otherwise. With that said, it looks to me like commodities are going to go bullish again and if that happens we will see a resumption of the bull market.

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