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Wednesday, May 19, 2010

Moment of truth (again)

Today we saw the gap at 1107 close and my short and long set up worked beautifully as the 200 MA served as a target for short and perfect entry for long (the low was 1101). So tomorrow we'll see which camp of EW theories is right. Elliott Wave Intl calls for a 3 of 3, an accelerated sell after a 2 retrace. Others call for a zig zag to the 50 day MA and me I tend to favor a C leg to close the gap at 1160. Which one will it be is anyone's guess and with a mixed trend here, I am staying cash and day trading only which has worked out great given the volatility.

So tomorrow these are the levels.. will the market attempt a rally to re-capture the 13 EMA? or will it serve as resistance? I will be shorting until the 13 EMA tells me not to.

1110 Short below it or use it as a stop for portion A -34 EMA Weekly
1146 Long above it for portion A -13 EMA Weekly
Trend is still up on the weekly 13/34

1173 Long above it on portion B -50 day MA
1102 Short below it or use as secondary stop for long position -200 MA
Trend is still up on the MA

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