Tuesday, March 27, 2012

Important Correction

I first mentioned the 1420 level as a target over a week ago and today we got pretty close at 1419. So now that we got this higher high and what seems to me like 5 waves completed, it is time for a correction. Now how the market behaves in this correction is crucial to what's coming in April. If the market does zigs zags without much impulsive action to the downside then this open the possibility of this being a Wave 1 of V, which would imply a small correction and then a lot more upside to come. But as it is, the waves look to me like the need to be retraced way back to low 1300's so the market can gain more traction to go up to the 1510 target. So it will be an interesting few days.. And again all indicators (sentiment, oscillators, etc) have not been reliable over the past two months and what normally would occur in a ridiculously overbought market has not happened, so how the market behaves around the Trend Average should dictate what's to come.

I loaded up on some SDS today and will log the trades later tonight.. got to run go get wifey.


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