Monday, May 23, 2011

Bearish Reversal

The short term bullish scenario is now out after the sell off today. What we saw last week was just a test of the TA and the market had no intentions of staying above it, so for now the correction continues. The 1317-1319 level broke and there is some support at 1312 but ultimately 1301 might be tested before this particular bearish wave is done. Then intermediate term has turned bearish too so we might see the entire wave from 1040 might finally retrace to a a Fib area, this wave never did the retrace and every single correction has proved to be minor ones. So if this is the corrective wave then the 1165-1244 (worth noting the 200 SMA is at 1239 so it would be a good test) area will be visited and in the process invalidating the intermediate Inverse H&S I posted last week. But for now, the market is again oversold and should be getting a bounce as soon as tomorrow or Wed again. If the bounce stalls at the TA again, expect 1200's..

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