Tuesday, July 26, 2011

Double Zig Zag

The market continues its correction and from looking at the charts it seems like it might need one final bearish leg to complete and double ZZ and resume the bullish trend. The issue of the debt ceiling might just be what the market needs to propel higher and until that issue is resolved, the market will continue to be in correction as investors are apprehensive about new positions. From the EW perspective, the market needs to correct to 1327 for a proper Fib correction. It has gotten close but maybe one more bearish leg will do to the 50 day MA and rally from there.

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