Friday, March 25, 2011

Bearish Wave to 1290?

The market rallied just like it did in after hours and it stopped at the 1319 resistance and I think we'll see a bearish wave on Monday. I see many people talking about this being a 5th leg to new highs and while this is possible, I wouldn't assume that until the next wave unfolds. We should be able to tell by early next week if this was a counter rally or a the beginning of a new bullish rally. If today was a W3, then the 1300 level should not be violated. I took another short position at 1318 so I am now net short and will be covering when the TA gets tested. I don't know how the market can ignore all the bad news and $105 oil but if it wants to go higher then better prices to sell longs and to short (or preserve cash).

Have a good weekend!

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