Wednesday, December 15, 2010

Market Update - November 15th

We got a bearish confirmation of the candlestick today and the market is right above the level I watch which is at 1232 as of today. However, we have some indicators like the MACD and the RSI corrected enough and that can point to a sudden rally too. Also, we have the Descending Broadening Wedge so the picture is not all that clear. As a trader, I am focusing on the trend and consecutive closes below 1232 would point to a trend change. But until then, I am assuming the trend is just being tested so I am holding off on shorting until I see some confirmation. The Elliott Wave counts I have see are not all that clear either as some point to a W4 and others to the beginning of a sell off. What happens tomorrow and possibly Monday should give us a clear idea of where this is going. But going by seasonality, odds favor further upside.

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