Wednesday, January 19, 2011

Top or another W4 correction?

The correction started today as I speculated yesterday and the market found the 1280 trend level I mentioned significant as it did a little song and dance around this level but managed to close slightly above it. And as I noted yesterday, if there is hesitation around this level, the market might just be correcting yet again to prepare another impulse. However, if the market does a retrace to the 1285-1290 level (or even 1295-1300 in case it turns out to be a "B" wave) and then heads down hard breaking this support trend then we can finally call this "the" top for the rally. Currently the trend level has risen to 1281 so this will be the level to watch tomorrow and possibly on Friday as well (it changes differently everyday). I might use the retrace to start selling my long positions from early December.

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