Monday, November 15, 2010

Market Update November 15th

The market ended up retracing today and then reversing down. However, it retraced into what I considered W1 territory, so I removed those labels until the count becomes more clear. The market respected the downtrend from the Descending Triangle and I shorted around that area and took profit towards the end of the day. The market is going down and the level to watch is 1210 as of today, until this level is breached we can assume lower prices to come. So I will probably go overnight short at the next test of the trendline. Most EW counters are calling this a corrective Wave 4with a bottom around the 1170-1180 area and it looks like it so far. As long as the we don't retrace all the way back to the 1150 level, I am inclined to think the market is just digesting gains before an end of the year bull run.

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