Wednesday, February 2, 2011

W4 complete?

The market seems to be digesting the gains from yesterday and it does look like a typical Wave 4. So it will probably correct a bit more and then launch or start going tomorrow morning. The catalyst (or should I say the excuse) for the sell off last week is still in the background and apparently deteriorating, so the market has a good excuse to sell off anytime. Looking at Bollinger Bands, it looks like we'll have an impulsive move in the next couple of sessions.

I am also updating my targets for the month today. Looking at wave structures and trendlines, I think we will see 1350 if the market persists above the trend average or break down and start correcting to the 1230 area. So I am projecting 1350 or 1230 by the end of this month. So far, it seems like the intermediate count I posted 6 months ago is the one we are currently on. And if this is correct, we will see 1500+ by year end. So if you are a short without stops (a horrible strategy promoted by you know who), keep this count in mind as it can save you a lot of money.

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