Tuesday, May 29, 2012

Trend Average confirmed bullish

The market gapped up as I had been predicting and in turn this has turn the TA to the bullish side. So today the signal changes and now the TA serves well as a good point to place stops. What remains to be see in whether this is a C wave or a W3 wave and I am hoping we will get the answer in the next week or so. Also, it's worth pointing out the daily MACD is also giving a bullish confirmation so whether the 1292 level is the actual low or not (in case the market goes for the 200 day MA), I feel good with the longs I've been adding. I suppose if China announces a stimulus it will be a great excuse to propel the markets. And while EU continues to be a concern, this is exactly the same song a dance they put up last year.. in the end people will conveniently forget IMO until we need a catalyst for another correction.

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