Tuesday, September 6, 2011

Now the Rally

Bears tried to break the 1136 level today but it did not happen and in turn the market managed a bullish reversal (even if it finished red). And in looking at candlesticks today's action looks like it could be a bottom. However, it needs to be confirmed with further upside in an impulsive manner. My guess is that the market is going for the TA in the next couple of sessions and how the news from Thursday get digested will probably set the tone for the rest of the month. At this point, I see no extremes so the market could start rallying hard from here or correct the bearish wave to the TA and then continue selling off. I will margin on the long side only at a bearish extreme (which I would prefer) or at the re-capture of the TA.

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