Thursday, June 9, 2011

Counter rally or beginning of real rally?

The market finally finally spanner its losing 6 day losing streak and now we should be headed for the TA, which is in the Fib retrace area. It remains to be seen if it gets there in a Zig Zag move or in a 5 wave move. For the market to really turn bullish the index needs to capture and close over the TA, ideally in a 5 wave move. Today's counter rally was in low volume, so there isn't much conviction just yet on the buying side. But I think we either start a rally soon to a new high or we keep correcting to a proper Fib retrace of the wave from 1040, which has yet to correct.

I day traded on margin on the long side on an intraday basis only and remain long on the market.

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