Wednesday, December 29, 2010

Possible Top at 1262 - December 29th

Picking tops is extremely difficult and usually I rely on EW and stock patterns to find the most probable topping patterns that indicate a top. Today there is the possibility that we have reached a short term top but it needs to be confirmed with consecutive closes under the 1253 level. We still have the Inverse Head and Shoulders target of 1269 but we have a rising wedge that broke (found usually on W5) in the last few minutes of trading and a clear bearish cross on the MACD. So tomorrow we'll see if we there is follow thru selling. I am maintaining both my short and long positions.

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