Friday, June 24, 2011

Nested 1-2 or bearish set up?

The market should give us a clue on a big rally wave or a sell off early next week. There is a nested 1-2 on the charts that point to a rally on Monday just like there is a set up where the wave we saw today is actually the start of a bearish W3. Whatever the case, the short term is a negative because it closed under the Trend Average and the intermediate has swung back to neutral at this point. But as I was saying earlier this week, the fact that almost 2 months of selling has done a relative low damage to prices points to a correction within a larger bull market until all trends turn down.

Have a great weekend!

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