Monday, September 12, 2011

Counter Rally Targets TA

The markets sold off as I was expecting last night and the market stopped short of triggering my stop loss, so at the end of the day it was a good profitable day. I think this wave is now done and remains to be seen if this new bullish wave will take us back to 1200 or just be a corrective wave, whatever it is, I am expecting it to test the TA which today sits at 1184 and probably will drop couple of points tomorrow. Once the market reaches the TA, the market will either stall and continue to sell off and possibly go for the 1101 low or will rally from there to 1200+ and maybe even the 50 day MA which is going to be tested sooner or later. So I'm looking at the TA as a level to hedge or add longs, there is a lot of uncertainty and the market has plenty of room for it to be oversold or overbought at this point.

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