Thursday, May 24, 2012

Nested bullish W1-2 set up

The market finally closed over the Trend Average (1318) today, its first close over the TA in more than 3 weeks! And the market left a bullish nested W1-2 set up so we just might see a gap up tomorrow. The news continue to be on the bearish side and if this leg turns out to be the W1 of minor 5, you'll see news change to the positive all of a sudden. It's interesting to see the changes in the market along with the news and how the news can be used as a contrarian trading tool.

This is a screen grab around the top of the market this year, notice how 1700 is being predicted in one of the links.

Now note the new at the bottom of the market back in November 2011. One would think the Europe would fall off the cliff.. yet the market rallied from 25% from there.

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