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Tuesday, September 28, 2010

Elliott Wave Update - September 28th

I forgot to renew my subscription to my chart software so I am waiting for them to re-issue access to my saved charts, so I'll put one up when I have access again. But basically we had what seemed like an impulse wave down in the morning only to reverse back and making another high( I doubt any nasty sell off will happen before the end of the quarter). And by looking at the charts, it looks like the market is setting up an Ending Diagonal or Rising Wedge which is usually found at the 5th leg of a rally. So as a short, I am just being patient until the market resolves itself. The market might continue to put aside all the bad news (and there have been many, including the Consumer Sentiment reading today) for a few days more. But just like we're seeing investor optimism at an extreme, we will soon see pessimism again.. that's just the way the market works.

So the bottom line is that we might still make that new hight in the 1160 area and then go down or the market stops here.

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