Tuesday, March 8, 2011

S&P 500 Triangle Nearing Completion

The triangle that started couple of weeks ago is nearing its end and soon we'll see a trust out of the pattern. Today the market rallied to above 1325 as I speculated yesterday and we could see the market roll over again tomorrow or Thursday. I went short again at 1322 because of the possibility of the 5th wave getting truncated and because of the coming Saudi Arabia protests. I think the market will use the oil excuse to sell off hard to test 1280. What the market does after that sell off will give us a clue on whether the market is done correcting or it is just beginning a bigger sell off.

On a side note, Gold has gone up over 5% since I first posted a bullish sign on Feb 21st and it is about to retrace. Once the retrace is done, it will be a good time to add more as I believe Gold will keep on going up. Also, emerging markets are flashing a buy signal as well right now.

No comments:

Post a Comment