Tuesday, June 5, 2012

W4 and the 200 day MA

The market continued to bounced as expected and it tested the 200 day MA today. And as I said yesterday, the ideal scenario would be for this W4 bounce to end before 1298 and then see another bearish leg to put in a clear 5th wave. The alternative of course is the market has already put in a bottom and we are seeing a real rally but for this to be confirmed the 200 day MA would have to be overtaken and the Trend Average should be in confirmed bullish. Until then, the assumption is more downside ahead. Also, because of how deep the correction has been I have to sit down and work on another long term count so I'll have something new by the end of this week.

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