Wednesday, March 30, 2011

Correction or Sell Off?

The market completed the W5 and stopped at the 1332 resistance level mentioned yesterday. And now, we should start seeing the correction (or sell off) starting tomorrow or Friday at the latest. I mentioned earlier this week the 1290 target and that is still a pretty much valid target for this coming bearish wave. And like I said before, if we get corrective zig zag waves then chances are we are going to see new highs for the year. But if we get there in a big sell off, then the bearish case will be reinforced. The TA is currently at 1305 and rising every day so we should see the TA tested at the very least on this pullback.

I sold all my longs at 1331, re-added the short position I covered yesterday and maintaining my original short so I am more than net short at this point.

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