Thursday, May 19, 2011

Bullish Wave Confirmation

The close today above the TA confirms a change of trend to the bullish side so perhaps we are witnessing the beginning of another rally to a new high. And like everything else in Technical Analysis, nothing is 100% certain so what I expect is for the market to start a bearish corrective wave tomorrow or Monday that will fall in the Fib retracement area of the this wave from 1318 and then resume another even more bullish wave. With that said, if the market goes back down to 1317 support or lower then I will continue to assume we are still not done with the correction. The TA will probably breached again in the next bearish wave but it will then serve as an excellent entry point when the market crosses it on the bullish again.

No comments:

Post a Comment