Monday, June 6, 2011

Approaching Major Support

The market continued its sell off today and now the intermediate term has turned confirmed bearish as well. Usually whenever the market is 30 points below or above the TA, there is a counter rally. So I am still waiting for the TA to be tested and the trend to turn bullish again. But obviously, technically speaking taking a bullish view right now is against the trend as the short term trend turned last week and now the intermediate term. My reasoning in maintaining a bullish posture is purely based on the fact that we are trading above the 200 day MA and chart patterns. If the market continues its way down, support will be at 1278 and 1272. But major support, the one that could truly signal a significant correction would be a breach of 1250.. we'll see.

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