Friday, January 20, 2012

Last rally early next week?

The market technically corrected today in a sideways W4 in the minute count and set itself up for a likely rally starting early next week. I assume this will be the very last rally for this last leg so we'll see if the market makes it to 1330. The TA is at 1298 and I assume it will reach 1300 early next week and per my "formula" for shorting uptrends, I am looking at a 36 point gap between the TA and the market to start short positions. I am assuming the coming correction will successfully test the 50/200 day MA (which should cross in the next week or so) so the plan will be to reload on longs at that point. All major averages are pointing to a bullish market(I'll post the main averages I'm following next week) and unless there is a bear miracle, we should see the market go for 1400.

Have a Great Weekend.

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