Monday, April 2, 2012

Coming Pullback

Last week I ended up saying we would get a 15-30 point move from the TA and we got it today after the TA was tested at 1405. Unfortunately (for me) it was to the upside, so now the break of 1419 leaves the possibility of a run towards 1440. However, there is no way of telling which way the market is likely to go without looking at the next bearish wave as there are numerous possibilities. The H&S pattern is out, however this can be an expanded flat with the wave topping today or sometime tomorrow in the 1420's and then followed by a strong bearish C wave. The market could also triangulate or put in a W2 for today's wave and then shoot up from there, so if we don't get a sell off (as in -1% plus) after this wave is done then odds favor more upside. I do expect the pullback to at least test the Trend Average so we'll see what happens at that point.

I bought some SDS today. Trades logged as follows;


No comments:

Post a Comment