Monday, March 28, 2011

Beginning of Sell Off?

The market should start selling off (or correcting) around this time. There is a chance that the mostly sideways action is part of a W4 with a W5 leg coming tomorrow or Wed. However, I doubt any new significant highs will be made until we get at least a correction. So I favor a sell off or correction in the next couple of days to the levels I've mentioned before. The key to the structure will be how the market reacts once we are at these levels. If the market holds at support then there is a good chance the bulls will take aim at a new high for the year. I will be covering my shorts on any reversal against the TA which is currently at 1293. If this is a real sell off I doubt the TA will be re-tested again once the market crosses it.. we shall see.

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