Friday, January 7, 2011

Completed Flat Correction



The market completed the "C" leg I was looking for but it did not go to the 1250's area at all. Instead this move has a "Flat" pattern correction in EW terms and that usually is indicative of a coming impulse wave up. Also, the market tested the level I posted yesterday and closed comfortably above it so I am expecting higher highs next week. I'm not doing any changes to my positions so I am going into the weekend hedged. I'm not sure if the rally will finally end next week or the week after but RSI is very overbought on the daily and monthly charts. So we'll see the correction to the 1170 area sooner rather than later.

Have a Good Weekend!

No comments:

Post a Comment