Tuesday, February 22, 2011

Bounce back tomorrow - Critical

The market did go into correction on Friday as I had suspected but this time we are getting a correction of a higher degree. The labels I had on Friday ended up being a W1/W2 with W3-W5 completing in the E-mini market. The market started today in bouncing mode and I think the bounce is either a W2 or a B. The question now is finding out what is the wave from 1335 to 1312. Considering W1 or A was 22 points, this current wave is about the same at 23 points so this could well be just a correction within the bullish trend. However, if we get a bounce that does not break 1325 tomorrow then it will be a W4 and we'll be on our way to 1304. The weekly trend is now down and the market would have to break 1343 to turn it back up.

I covered my shorts from last week at 1316 and re-shorting at the coming bounce.

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