Wednesday, June 8, 2011

Still waiting for counter rally

The market continued its decline today and it hit the first support at 1277 before bouncing a bit. With this close, the market has now closed down 6 consecutive sessions, which it hasn't done since last summer. There is not much news in regards to technical indicators as they are all oversold at this point and would support a counter rally at any moment. When it comes to waves, the market looks like it is completing a triangle that should limit the downside to a few more points before bouncing to the 1340 area. I am expecting a bounce that will at least test the Trend Average this week.

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