Tuesday, April 19, 2011

Intermediate trend confirmed bearish

The market retraced higher as I had been expecting on this wave and it seems like we will see a gap up tomorrow to test resistance. The levels to watch are 1316 and 1322 and I am assuming we will see more selling after these levels are tested. The TA is currently at 1318 so I expect the market to gap up (or run up) above it but reverse and close below it. Any closes above the TA turns the short term trend bullish again so if you're shorting keep an eye on it. I am still in cash and waiting for the right moment to get back in on the short side.

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