Thursday, January 27, 2011

Market Update - January 27th

The 1300 target was met today as speculated earlier this week and now the index is again at what could be a set up for a top. This last wave hasn't been all that impulsive and I am starting to see the media talk more and more about a coming correction. So when it happens, it will probably happen very fast.Standard and Poor's for instance is calling for a correction of up to 10% in the next two weeks (a very bold call) and people like Marc Faber calling for similar corrections. But while this is obvious at this point, the question still is where will the top be and how deep is the correction going to be. Most people are calling for a healthy pullback but some EW counters are calling for an all out crash. And like I said last week as long as we stay with our friend (the trend), we are one step ahead already. Currently, that trend is at 1290 and rising.

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