Monday, January 24, 2011

Market Update - January 24th

So far the correction that took place last week has avoided closing below the trend average consecutively and like I said last week, hesitation at the 1280 level increases the probabilities of another leg up. However, the possibility of the market turning down hard this Tues or Wed is not out of the question because of the way the waves are structured and a likely bearish cross on the MACD. Rally tops can be sudden and quick but other times they will grind slowly so we just have to wait and see. My stops on my shorts did not trigger and my long positions are still intact. Maybe it will some sort of earnings disappointment that will be the catalyst for the coming correction?

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