Friday, March 16, 2012

Bearish Monday

The market still had a little left and continued to push a bit higher today. There is a potential Ascending Triangle (typical of W4's) targeting 1409 so we'll see if that plays out in pre-market or the cash market. Whatever the case, we should see a down Monday and it'll be interesting to see if the next wave is going to be another correction or an actual sell off. The market looks like a wedge so it holds the potential for a swift bearish wave. I think if the market holds above the Trend Average then it will have more room to go. So far the best indicator out of all (Oscillators, Wave counting, Money flow, etc) has been the TA so that is what we should be watching. If we get a minor gap up Monday I will be shorting the market.

I started a short trade in the morning but closed it at break even after seeing the triangle, so no need to log this trade as it did nothing to my positions.

Have a great weekend!

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