Monday, June 13, 2011

SP 1250 to be tested?

Market seems like it is nearing the end of the correction as support levels seem to be holding. Also, an indicator I like to use, the % of stocks below the 20 day MA indicates an extreme not seen since the last bottom in March so I think we at or close to the bottom. Obviously, I am not committing positions until the trend confirms the bottom but I am definitely on the look out for a turn around. I am assuming we are so close to 1250 that it will be tested, the 38% of the wave from 1040 is at 1245 so I think there will be at least a strong counter rally if these levels are tested. If the market does get there, I will go long there with the TA as target for profit taking.

No comments:

Post a Comment