Thursday, December 9, 2010

Market Update - December 9th - Ascending Triangle forming targets 1250

The market is not clear today since it failed to impulse to the downside. And unless it does so tomorrow, the price pattern looks like an Ascending Triangle with a 1250 target (which is the target for an Inverse H&S from 8/21). The bearish confirmation from couple of days ago was essentially reversed today so the trend is neutral leaning bullish. And while there is absolutely no doubt in my mind there will be a proper Fib correction of the wave from 1174 and the wave from 1040, the best option is to assume higher prices. So I pared down my shorts my 80% today since it seems the market might continue up and I am holding my longs. I will re-short again if the Ascending Triangle comes thru.

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