Bulls managed to solidify their case by breaking the 2064 resistance and making a higher high for the structure that started at 1980. This makes it a 92 point advance and leaves the market just couple of percentage points from the all time high. We should see a correction as soon as Monday, possibly to the 2025-2030 area but we still have to keep in mind the possibility of a melt up in the stand alone W3 scenario I mentioned yesterday. The bottom line is bears had an opportunity to bring down the market in the past 4 weeks but prices are still above the 50 DMA. And now that oscillators have reset, odds favor sentiment swinging towards the bullish side. What bulls need at this time is a good excuse to rally.
I ended up stopping out of my USO on my raised stop limit for a nice profit. There was a micro count that ended up being overlapping, so I am ok with locking in my profits and not stress about it over the weekend. We should find out soon if the current bounce in oil is a zig zag (which implies another bearish leg) or the beginning of a much bigger bounce. I hope we see another low so I can buy cheap again.
Have a great weekend!
For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com
Short Term Trend = Bullish
Medium Term Trend = Bearish trend being challenged
Long Term Trend = Bullish
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